HomeMy WebLinkAboutRESO 9346Resolution No. 9346
Resolution of the Council of the City of Palo Alto Approving a Long
Term Power Purchase Agreement with Frontier Solar LLC for the
Purchase of Electricity Generated by Solar Electric Generating
Facilities
A. On April 12, 2011, the Governor approved Senate Bill ("SB") Xl-2, which requires
that all retail sellers of electricity in California, including publicly-owned utilities, serve 33
percent of their retail electricity sales with renewable energy by 2020.
B. On April 16, 2012, Council approved an update to the Long-term Electric
Acquisition Plan's (LEAP) strategy related to the Renewable Portfolio Standard (RPS). The
updated strategy specifies that the City's objective is to reduce the carbon intensity of the
electric portfolio by pursuing a minimum level of renewable purchases of at least 33% of retail
electricity sales by 2015.
C. On March 4, 2013, Council approved a Carbon Neutral Plan, which would enable
the City to achieve a carbon neutral electric supply portfolio starting in calendar year 2013.
D. The City is interested in purchasing power generated by renewable resources for
the benefit of its electric customers.
E. By purchasing renewable energy resources, the City will help reduce the
production of greenhouse gases, will meet its RPS requirements under SB Xl-2 and LEAP, and
will meet its Carbon Neutral Plan goals.
F. Frontier Solar LLC ("Frontier"), through its parent company, Ridgeline Energy LLC
proposed its project in response to the City's Request for Proposals 147538 ("RFplI) in
September 2012. Its proposal is competitive with other RFP respondent proposals.
G. The execution of a power purchase agreement ("PPA") with Frontier is
anticipated to enable the City to meet a five-percent portion of its goal of sourcing 33% of its
electric needs from renewable resources and its goal to implement the Carbon Neutral Plan.
H. The City is allocated a 100 percent share of the power from the solar project
located in Stanislaus County, California, and will yield approximately 20 megawatts of plant net
output.
I. The PPA will allow the City to extend the agreements at the City's sole option for
additional five-year terms after the initial thirty year terms.
J. The County of Stanislaus will be the lead agency for the purposes of compliance
with the requirements of CEQA for Frontier.
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The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council approves the power purchase agreement between Frontier
Solar LLC, as seller, and the City of Palo Alto, as buyer. The delivery term of the agreement is
thirty (30) years, commencing upon the commercial operation date of the planned electric
generation facility, which date is expected to be no later than December 31, 2016. The City will
receive a 100 percent share of the facility's net output. Spending authority under the
agreement shall not exceed Ninety Nine Million Dollars ($99,000,000).
SECTION 2. The Council delegates to the City Manager the authority to execute on
behalf of the City the agreement with Frontier Solar LLC and any confirmations executed in
connection with the agreement or documents necessary to administer the agreement that are
consistent with the established policies of the City Council.
SECTION 3. With respect to the Council's award of the power purchase agreements
referred to in Section 1 above, the Council waives the creditworthiness requirements of Palo
Alto Municipal Code section 2.30.340(c), as those requirements may apply to Frontier Solar LLC.
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SECTION 4.
INTRODUCED AND PASSED: June 17, 2013
AYES: BERMAN, BURT, HOLMAN, .KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT:
ABSTENTIONS:
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APPROVED:
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