HomeMy WebLinkAboutRESO 103121
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Resolution No. 10312
Resolution of the Council of the City of Palo Alto Authorizing the City
Manager or Their Designee to Transact for Electric Supplies to Meet the
City’s Electrical Loads under Electric Master Agreements, under
Specified Terms and Conditions During Calendar Years 2026 through
2040, Inclusive
R E C I T A L S
A. By Resolution 10204 adopted in 2024, the City Council authorized the City
Manager or their designee to transact electric supplies to meet the City’s electrical loads under
electric Master Agreements with suppliers during a 15-year delivery period, between calendar
years 2025 through 2039, under the following conditions:
I. The maximum term of any transaction shall not exceed three years,
commencing on the date of execution of the transaction;
II. No transaction entered into shall extend beyond December 31, 2039;
III. The maximum expenditure under any Master Agreement shall not
exceed $75 million in the aggregate.
B. The Resolution also noted Council’s approval of an Energy Risk
Management Policy, via Resolution 92721, which provided for the oversight and controls
necessary to manage risks inherent in transacting electric supply under the Master Agreements;
the Risk Management Policy has since been updated, most recently in June 2024 via Resolution
101662.
C. Since the authorization provided in 2024 via Resolution 102043, staff has
undertaken over 20 transactions totaling $59.7 million, of which $33.1 million is outstanding,
meaning that delivery will occur during or after August 2026;
D. In December 2016, via Resolution 96524, Council approved a standard
form electric master agreement based on the year 2000 version of the Edison Electric Institute
(EEI) Master Power Purchase and Sale Agreement. This standard form agreement has been
made available to any wholesale utility supplier on the City’s website since that time; however,
execution of, and delegation of authority to transact under, standard form master agreements
with specific suppliers remains subject to Council approval before any transactions may be
completed.
The Council of the City of Palo Alto does RESOLVE as follows:
1 Resolution 9272: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=53542&dbid=0&repo=PaloAlto
2 Resolution 10166: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=62033&dbid=0&repo=PaloAlto
3 Resolution 10204: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=62085&dbid=0&repo=PaloAlto
4 Resolution 9652: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=54485&dbid=0&repo=PaloAlto
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SECTION 1. The Council authorizes the City Manager or their designee to execute
transactions under Council-approved Master Agreements with pre-approved suppliers to
purchase and/or sell electricity supplies and related services to meet the City’s forecasted
electricity load and regulatory requirements, subject to the following conditions:
(a) The date for delivery of the electricity supplies for each transaction shall not
exceed 36 months from the date the transaction is executed;
(b) The delivery date of any transaction shall not extend beyond December 2040;
(c) The maximum aggregate transaction limit under each Master Agreement shall be
$125 million. However, as an additional risk mitigation measure, Utilities staff
will notify the City’s Utilities Risk Oversight and Coordinating Committee9
(UROCC) whenever a given supplier approaches the $75 million transaction limit
authorized by Resolution 10204, to permit the UROCC to advise staff on whether
to authorize additional transactions up to the $125 million authorized herein for
that supplier;
(d) All transactions shall be subject to the Palo Alto Municipal Code;
(e) All transactions shall be subject to the City’s Energy Risk Management Policy; and
(f) The $33.1 million worth of outstanding transactions (to be delivered during or
after August 2026) shall be applied against the $125 million maximum
expenditure limit per Master Agreement established herein.
SECTION 2. The suppliers that have Master Agreements with the City and are
authorized to transact are listed below; this list may be expanded with City Council approval.
a. Avangrid Renewables, LLC;
b. BP Energy Company;
c. Cargill Power Markets, LLC;
d. Constellation Energy Generation, LLC;
e. DRW Energy Trading LLC;
f. Dynasty Power Inc.;
g. NextEra Energy Marketing, LLC;
h. NRG Business Marketing LLC;
i. PacifiCorp;
j. Powerex Corp;
k. Shell Energy North America (US), L.P.;
l. Silicon Valley Clean Energy Authority (SVCE); and
m. Turlock Irrigation District.
9 The UROCC, which consists of the Directors of Utilities, Public Works, and Administrative Services, as well as a
representative from the City Manager’s Office, ensures proper risk management controls are in place with respect
to the City’s energy procurement, and ensures compliance with the Council-approved Energy Risk Management
Policy.
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SECTION 3. The Council hereby finds that authorizing the City Manager or their
designee to transact for electric supplies to meet the City’s electrical loads under electric Master
Agreements will not result in any direct or indirect physical change in the environment, and
therefore does not constitute a project requiring environmental assessment for the purposes of
the California Environmental Quality Act, pursuant to CEQA Guidelines section 15378(b)(5).
INTRODUCED: AUGUST 17, 2026
PASSED: AUGUST 17, 2026
AYES: BURT, LAUING, LU, LYTHCOTT-HAIMS, RECKDAHL, STONE, VEENKER
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
_____________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
_____________________________ ______________________________
Assistant City Attorney City Manager
______________________________
Director of Administrative Services
______________________________
Director of Utilities
Docusign Envelope ID: 52ABDE49-58FF-8390-8001-6CACC1C617A4
Certificate Of Completion
Envelope Id: 52ABDE49-58FF-8390-8001-6CACC1C617A4 Status: Completed
Subject: RESO 10312 - Authorizing the City Manager or Their Designee to Transact for Electric Supplies to
Source Envelope:
Document Pages: 3 Signatures: 6 Envelope Originator:
Certificate Pages: 2 Initials: 0 Nicole Bissell
AutoNav: Enabled
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
Nicole.Bissell@PaloAlto.gov
IP Address: 165.225.242.117
Record Tracking
Status: Original
8/25/2026 6:20:57 PM
Holder: Nicole Bissell
Nicole.Bissell@PaloAlto.gov
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
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Amy Bartell
Amy.Bartell@paloalto.gov
Assistant City Attorney
City of Palo Alto
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Alan Kurotori
Alan.Kurotori@paloalto.gov
Director of Utilities
City of Palo Alto
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Lauren Lai
Lauren.Lai@paloalto.gov
Director Administrative Services/CFO
COPA
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Ed Shikada
Ed.Shikada@paloalto.gov
City Manager
City of Palo Alto
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Signer Events Signature Timestamp
Veenker, Vicki
vicki.veenker@paloalto.gov
City of Palo Alto
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Signed: 9/12/2026 12:56:58 PM
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Mahealani Ah Yun
Mahealani.AhYun@PaloAlto.gov
City Clerk
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Using IP Address: 170.85.155.21
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Envelope Sent Hashed/Encrypted 8/25/2026 6:23:20 PM
Certified Delivered Security Checked 9/14/2026 6:31:51 PM
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