Title
Approval of Agreement No. AGR19-43 with Los Alamos Solar II, LLC for the Purpose of a Solar Power Purchase Agreement to Deliver Photovoltaic Generated Electricity to the County
Recommended Action
I move that the Board of Public Utilities approve Agreement No. AGR19-43 with Los Alamos Solar II, LLC for the purpose of a Power Purchase Agreement to deliver photovoltaic generated electricity to the County, and forward to Council for approval.
Staff Recommendation
Even though the pricing is higher than other potential opportunities, staff believes this PPA as presented is an acceptable option. Staff presents this PPA for Board consideration.
Body
At the September 2018 BPU regular Board meeting, staff presented indicative pricing for a solar PV Power Purchase Agreement (PPA) at the landfill site, which came in at $.06/kWh. BPU directed staff to proceed with issuing a request for proposals, which was issued in the second quarter of 2019. Electric Production went out with an RFP and four proposals were received and evaluated based on the following evaluation criteria:
CRITERION & WEIGHTED POINTS
1. Introduction and statement of qualification - 5
2. Project experience - 5
3. Technical approach - 15
4. Schedule - 5
5. Cost proposal - 30
6. Suitability and aesthetics - 10
Total - 70
The evaluation committee selected PNE and Positive Energy doing business as Los Alamos Solar II, LLC. Based on the evaluation criteria all offerors were qualified with cost being the deciding factor. The selected offerer proposed a price of $.0585/kWh.
Over the 25-year term, the 1.32MW (estimated DC nameplate capacity) PV system’s average annual production is estimated at 2,250,000 kWh (2,250 MWh), which is approximately 0.4% of the County’s annual load.
In September 2010, Mod 17 to the ECA was executed authorizing renewable energy produced at the landfill site as an approved resource. On June 17, 2019 the Operating Committee was presented with the Solar PV PPA pricing and provided concurrence to proceed with this project as an approved resource.
Alternatives
If the agreement is not approved no further action will be taken to develop new PV resources at the landfill unless directed by the Board.
DPU will continue other efforts to procure carbon free power resources. Staff is exploring potential opportunities with indicative prices between $0.032/kWh and $0.045/kWh for firm renewable energy.
Fiscal and Staff Impact
Energy procured through this PPA will offset fossil fuel generated power that we buy on the spot market. An analysis of 2018 market purchases, this resource would add 30 cents to the average annual market price of $39.71 per MWh a 0.8% increase.
Procuring and managing energy to serve the County’s load is part of Electric Production’s normal workload.
Attachments
A - AGR 19-43