Title
Approval of the Carbon Free Power Project Amended Budget and Plan of Finance dated June 24, 2021 for the remaining Phase 1 of the Combined Operating License Application Licensing Period for the six-module plant configuration.
Recommended Action
I move that the Board of Public Utilities pass the motions as stated below and forward to Council for approval.
I move that Council authorize DPU’s continued participation in Phase 1 of the Licensing Period at the investment cap of $1.26 million for Development Cost Share in the CFPP; and
I further move that Council authorize the Utilities Manager to adjust LAC’s Entitlement Share in the CFPP as needed to keep LAC’s Development Cost Share in the CFPP at or below $1.26 million for the remaining Phase 1 of the Licensing Period; and
I further move that Council hereby authorize the Utilities Manager, should the County’s Phase 1 Development Cost Share exceed $1.26 million, to submit a Notice of Withdrawal to the PMC pursuant to the Power Sales Contract notice requirements.
Staff Recommendation
Staff Recommends the Board of Public Utilities approve the motion as stated.
Body
The CFPP project has reached a different milestone than anticipated a year ago and this is necessitating a new budget and plan of finance. This also means we are at one of the contractual off-ramps six months earlier than anticipated. It is an important at this juncture for the project to move forward with the final design configuration that will be part of the Phase I Combined Operating and Licensing Application (COLA) submittal. At the June UAMPS Project Management Committee (PMC) meeting and Board meeting, the PMC recommended, and the Board approved moving forward with a 6-module plant with a total capacity of 462MW. This smaller plant has a target levelized cost of electricity of $58/MWh in 2020 dollars instead of the previous target of $55/MWh in 2020 dollars. While the cost increased by $3/MWh, the smaller plant w...
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