Title
Approval to Execute a Power Purchase Agreement (PPA) in an Amount not to Exceed $9,195,750.00 Plus Applicable Gross Receipts Tax, to Meet Forecasted Los Alamos Power Pool Load for the Months of August and September 2026
Recommended Action
I move that Council approve a Power Purchase Agreement with a yet to be determined power supplier competitively selected not later than July 31, 2026, in an amount not to exceed $9,195,750.00 plus applicable gross receipts tax for the purpose of supplying power and energy to serve the Los Alamos Power Pool's electric load with a definite purchase for the month of August and a contingent purchase for the month of September, depending on whether the new electric coordinating agreement is approved. I further move that Council assign signature authority to the Utilities Manager to secure these monthly power purchases.
Utilities Manager's Recommendation
The Utilities Manager recommends that Council approve the motion as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities reviewed the PPA at their Regular Meeting on July 22, 2016 and recommends that Council approve the motion as presented.
Body
DPU’s current Power Purchase Agreement (PPA) ends on July 31, 2026. Up to 75 megawatts (MW) of purchased power is needed throughout the months of August and September 2026 to supply the Los Alamos Power Pool’s forecasted load. 75 MW over 61 days equates to 109,800 megawatt hours (MWh) of energy.
DPU is seeking the lowest-priced offer for a PPA to meet this need. At the time of publication of this staff report, indicative pricing is $67/megawatt-hour (MWh). Staff will solicit offers until through July 28, 2026. This pricing is presented as an estimate because the price will change along with market power prices, up until the day that the agreement is fully executed. A 25% contingency of $16.75/MWh is added to the indicative price to account for a potential market price increase....
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