Title
Approval to Execute One or More Power Purchase Agreements in an Aggregate Amount not to Exceed $18,509,400.00 Plus Applicable Gross Receipts Tax, to Meet Forecasted Los Alamos Power Pool Load for the period starting October 1, 2026, and Running Through March 31, 2027
Recommended Action
I move that Council approve of one or more Power Purchase Agreements with a yet-to-be determined power supplier or power suppliers, competitively selected, in an amount not to exceed $18,509,400.00 plus applicable gross receipts tax, for the purpose of supplying power and energy to serve the Los Alamos Power Pool's electric load for the period starting October 1, 2026, and running through March 31, 2027. I further move that Council assign signature authority to the Utilities Manager to secure these power purchases.
Utilities Manager's Recommendation
The Utilities Manager recommends that Council approve the motion as presented.
Board of Public Utilities' Recommendation
The Board of Public Utilities reviewed the PPA requests at their Regular Meeting on September 16, 2016 and recommends that Council approve the motion as presented.
Body
DPU’s current Power Purchase Agreement (PPA) ends on September 30, 2026. Up to 75 megawatts (MW) of purchased power and 246,792 megawatt-hours (MWh) is needed for the period to supply the Los Alamos Power Pool’s forecasted load remaining after accounting for behind-the-meter generation. These PPA’s will cover the next 6-months while Foxtail Flats is under construction. Next spring, staff will have more certainty on how much solar energy will be supplied to the Los Alamos Power Pool from April 1, 2027 and afterwards. DPU anticipates another solicitation next spring for nighttime power needs after March 31, 2027.
DPU is seeking the lowest-priced offers for a PPAs to meet this need. At the time of publication of this staff report, indicative pricing averages $60/MWh. This pricing is presented as an estimate because the price will change...
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