Title
Approval of the Termination and Settlement Agreement and Release of Claims between the Incorporated County of Los Alamos, New Mexico, and Uniper Global Commodities North America LLC
Recommended Action
I move that the Board of Public Utilities approve the Termination and Settlement Agreement and Release of Claims between the Incorporated County of Los Alamos, New Mexico, and Uniper Global Commodities North America LLC, and forward to Council for approval.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
Body
On February 4, 2020, the Incorporated County of Los Alamos (LAC) and Uniper Global Commodities North America LLC (UGCNA) entered into a 15 MegaWatt (MW), 15-year, Power and Renewable Energy Credit Sales Agreement, AGR20-926, amended on February 2, 2021 by AGR20-926-A1.
On January 12, 2022, LAC and UGCNA entered into a separate 25 MW, 33-month, Power and Renewable Energy Credit Sales Agreement, Agreement No. AGR22-928.
Due to circumstances outside of UGCNA control (See Attachment B press release.), LAC and UGCNA have mutually agreed to termination of these aforementioned agreements, under the terms set forth in the Termination and Settlement Agreement and Release of Claims between the Incorporated County of Los Alamos, New Mexico, and Uniper Global Commodities North America LLC.
Under the Termination and Settlement Agreement and Release of Claims, LAC and UGCNA have agreed to the following:
1. As consideration for the termination of the PPA Agreement, UGCNA shall pay LAC an amount equal to FIFTY-EIGHT MILLION DOLLARS AND ZERO CENTS ($58,000,000.00).
2. To settle any existing and all potential obligations, liabilities, claims and disputes and differences between them by executing and performing the Termination and Settlement Agreement and Release of Claims.
3. Recognize that by the execution and performance of the Termination and Settlement Agreement and Release of Claims, both par...
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