Title
Approval of Amendment No. 1 to the Power and Renewable Energy Credit Sales Agreement, County Agreement No. AGR20-926 between Uniper Global Commodities North America, LLC and the Incorporated County of Los Alamos, New Mexico.
Recommended Action
I move that the Board of Public Utilities approve Amendment No. 1 to AGR20-936, a Power and Renewable Energy Credit Sales Agreement, between Uniper Global Commodities North America, LLC and the Incorporated County of Los Alamos and forward to Council with a recommendation for approval.
Staff Recommendation
Staff recommends approval as presented.
Body
In January 2020, the Board and Council approved a Power and Renewable Energy Credit Sales Agreement with Uniper Global Commodities North America, LLC. The Contract Quantity is a Firm 15 MW’s Around the Clock (ATC) Power Purchase Agreement (PPA). It is a take-or-pay PPA for a 15 year term with no escalator. The energy and capacity will be sourced primarily from a wind and solar projects located in New Mexico.
Since the contract was executed there has been extreme upward pricing pressure in the California Independent System Operator (CAISO) & Desert Southwest Western Electricity Coordinating Council (WECC) resulting in the following:
• Developers pricing from forward curves have increased;
• Tighter liquidity for firming intermittent resources;
• Pressure on Engineering, Procurement, and Construction companies to get assets on faster combine with COVID has created a tighter labor market.
Section 3.2 (b) of the Agreement provides that “Seller has executed such Facility contracts, on terms satisfactory to Seller in its sole discretion, to purchase the complete Contract Quantity.”
In consideration of the historic shift in power prices over 2020, Uniper has requested a $3.00/MWh increase to the LAC/Uniper PPA to compensate for upward pricing pressure experienced in 2020.
The current...
Click here for full text