Title
Possible Approval of the Termination and Settlement Agreement and Release of Claims between the Incorporated County of Los Alamos, New Mexico, and Uniper Global Commodities North America LLC
Recommended Action
I move that Council approve the Termination and Settlement Agreement and Release of Claims between the Incorporated County of Los Alamos, New Mexico, and Uniper Global Commodities North America LLC.
Utilities Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Board, Commission or Committee Recommendation
The Board of Public Utilities approved this Agreement and Release at their March 6, 2024 Work Session and recommends that Council approve the motion as presented.
Body
On February 4, 2020, the Incorporated County of Los Alamos (LAC) and Uniper Global Commodities North America LLC (UGCNA) entered into a 15 MegaWatt (MW), 15-year, Power and Renewable Energy Credit Sales Agreement, AGR20-926, amended on February 2, 2021 by AGR20-926-A1.
On January 12, 2022, LAC and UGCNA entered into a separate 25 MW, 33-month, Power and Renewable Energy Credit Sales Agreement, Agreement No. AGR22-928.
Due to circumstances outside of UGCNA control (See Attachment B press release.), LAC and UGCNA have mutually agreed to termination of these aforementioned agreements, under the terms set forth in the Termination and Settlement Agreement and Release of Claims between the Incorporated County of Los Alamos, New Mexico, and Uniper Global Commodities North America LLC.
Under the Termination and Settlement Agreement and Release of Claims, LAC and UGCNA have agreed to the following:
1. As consideration for the termination of the PPA Agreement, UGCNA shall pay LAC an amount equal to FIFTY-EIGHT MILLION DOLLARS AND ZERO CENTS ($58,000,000.00).
2. To settle any existing and all potential obligations, liabilities, claims and disputes and differences between them by executing and per...
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