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HomeMy WebLinkAbout0374.000.1 1 ·1 I 1 , l 1 i - • \ " . • ----~--.~---,,*- '" ... ",;_."._~ ... " ___ ~_.~_~ __ ,.,...,._.,,~:;:,,,"._....,~,'!:.,,;lI_~ ~ .. ; W June 21, 1990 TIlE llONORASLE CIT'! COUNCIL Palo Alto, CalifQr-nia Landfill Gas Recovery project. cogeneration Facility -status Report. Members of the council: This is an informational report concerning the status of the cogeneration facility project.. No Council action is required~ city staff and representatives from Pacific Gas , Electric (PG&E) and Palo Alto Landfill Gas Corporation (PLGC) inspected the cogenerat.ion facility on April 14.. 1990. The facility was determined to be substantially complete and consistent with the lease agreement between the city and PLGC and with the power purchase agreement between PG&E and PLGC. pjscussion An agreement bet ..... een PLGC -and the city 'Was approved by cou·ncil in 1985.. The agreement allows the developer to use landfill-generated metbane qas to produce electricity and sell it to PG&E, with the city receiving royalties from the sale. The original 21-year gas lease bas been modifie~ several ~lmes since 1985. The concept of the city receivIng royalties from the sale of electricity bas not cbanqed~ By completing: the project on April 14.. 1990" the developer was able to meet the PG&E deadline stipulated in their po\I'er purchase agreement. The tenns of this agree:rnent 'Were negotiated Quring the energy shortage and are extremely favorable to the developer.. PLGC recently requested an increase in tbe quantity of natural gas for blending ~ith the landfill gas at the cogeneration plant for a higber output or electricity.. An amendment to the lease is being prepared to deal with this request .. and will be brought to Council within the next three months. Although the project "was difficult to design and rather complicated to build.. the cooperation received from various City departments made it possible to construct th~ facility in a record time of four months. As part of t.he work, the utilities Department built COnduits which were necessary for the interconnection of the facility to the Palo Alto electrical net~ork. -1- CHR: 374: 0 I , " f .. -~ .. , L ~. r .' .. ~~ " " o o Th& facility i. located behind the Regional Water Quality control Plant and protected on three sides by an earth berm, which acts as a visual and sound ~arrier. A fence around the facility provides the security needed at the site. The completed project ~eets all City requirements and regulations. Respectfully sUbmitted, ~~hv GEORGE BAGDON Assistant Director of Public Works QJ}jJ2J~-- -2- CMR:314:0 • --.