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 Council 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.
Board, Commission or Committee Recommendation
The Board of Public Utilities reviewed this request at their regular meeting of December 15th and voted 3 to 0 with 2 abstentions to recommend approval of this agreement 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 MW (megawatt) PPA for the period between October1, 2022 through June 30, 2025.
Earlier this year, BPU and CC approved a 15 MW PPA with Uniper Global Commodities that consisted of wind, solar and market power for firming. The wind and solar resources were sized to deliver 76% renewable energy on an annual basis. To achieve this level of renewable energy, Uniper oversized both the wind and solar resources for this contract. The contract also gave the County right of first refusal on all excess renewable generation above the contract requirement of 15 MW, priced at the Palo Verde index plus $0.75 per MWh (megawatt hour) non-firm.
One of the most unique and defining attributes of this 25 MW PPA is it leverages the over build of resources from previous Uniper contract and includes it as a firm fixed price resource at $34.50 per MWh. Blending the excess renewable energy with the m...
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