Title
Approval of Amendment No. 1 to New Exit Date Amendment Amending and Restating the Amended and Restated San Juan Project Participation Agreement and the Extended Operations Agreement
Recommended Actioa
I move that County Council Approve Amendment No. 1 to the New Exit Date Amendment, Amending and Restating the Amended and Restated San Juan Project Participation Agreement and Approve the Extended Operations Agreement.
I further move that Council authorize the Utilities Manager to execute the final drafts of Amendment No. 1 to New Exit Date Amendment Amending and Restating the Amended and Restated San Juan Project Participation Agreement and the Extended Operations Agreement
Utilities Manager Recommendation
The Utilities Manager recommends that the County Council approve the motion as presented.
Board, Commission or Committee Recommendation
The BPU discussed this topic at their regular meeting of February 16th and recommends that the County Council approve the motion as presented with a board vote of four for and one against the amendment and agreement.
Body
Power Operations is attempting to manage a large gap in generation with the impending San Juan Closure. The market is forecasted to behave much like the prior two years during the third quarter of 2022 (July, August, and September). On-peak futures are trading above $230.00/MWh of Energy for this time period. In addition to market pricing, supply chain issues are plaquing the energy sector by delaying new generation resources throughout the west. These factors have led the current ownership of San Juan Generating Station to request an extension of operations for this three-month period.
A San Juan extension allows Los Alamos County to meet the Power Pool’s energy needs in the most economic fashion. Current projections place a conservative savings value to the Power Pool in the amount of $7,000,000.00. Without this extension LAC can only fill this energy gap in one mano...
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