Title
Approval of AGR22-928, a Power and Renewable Energy Credit Sales Agreement, between Uniper Global Commodities North America, LLC and the Incorporated County of Los Alamos
Recommended Action
I move that the Board of Public Utilities approve AGR22-928, 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
With the planned closure of the San Juan Generating Station on June 30, 2022, the Operating Committee for the Los Alamos Power Pool (LAPP) voted to replace this power with a short-term Power Purchase Agreement (PPA) to coincide with the expiration of the current Electric Coordination Agreement on June 30, 2025.
The County’s interest in the San Juan Generating Station represents 36 MW of capacity or approximately 40% of the LAPP annual energy demand. This proposal is for a 25 Megawatt (MW) PPA for the period between October1, 2022 through June 30, 2025.
One of the most unique and defining attributes of this PPA is it leverages the over build of resources from the previous UNIPER contract and includes them as a firm fixed price resource at $34.50/MW. In this case the cost of the resources are significantly less than projected Market Pricing. Utilizing the current models, UNIPER and Power Operations believes we can source 28% of the energy for the 2.75-year period with Renewable resources. This equates to roughly 170 Gigawatt hours (GWhs) over the contract period. There is also potential for UNIPER to add additional renewables, however 28% is what we expect based on current information.
The remaining 72% of the PPA is based on forecasted market prices. The forward outlook of $72.75 on-peak and $51.00 off-peak. These prices are based on the Paloverde Index and are not adjusted to the Four Corners hub where LAC receives pow...
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