REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate, Approve, and Execute a Power Purchase and Sale Agreement With the Tri-Dam Power Authority to Purchase Carbon-Free Energy From the Tri-Dam Project
Report
COUNCIL PILLAR
Deliver and Enhance High-Quality Efficient Services and Infrastructure
Promote Sustainability and Environmental Protection
BACKGROUND
In 2013, Silicon Valley Power (SVP) and the Tri-Dam Power Authority entered into a Power Purchase and Sale Agreement (PPA) to purchase energy from four hydroelectric power plants located on the Middle Fork of the Stanislaus River in Tuolumne County: carbon-free electricity from the 72 MW Donnells Powerhouse; carbon-free and renewable electricity from the 25.7 MW Tulloch Powerhouse, the 11.2 MW Beardsley Powerhouse, and the 16.2 MW Sandbar Powerhouse (Tri-Dam Project). This PPA will terminate on December 31, 2023.
On October 2022, the Tri-Dam Power Authority notified SVP that it had released a Request for Bid (RFB) for the output of the Tri-Dam Project for a five-year period beginning January 1, 2024. After review of the RFB materials, the existing operations of the project and the project attributes, SVP submitted a bid to the Tri-Dam Power Authority. On November 17, 2022, the Tri-Dam Project Board selected SVP's bid for further negotiation.
DISCUSSION
SVP has a continued need for renewable and carbon-free energy to meet the City's load growth, the City's Climate Action Plan, and the State's Renewable Portfolio Standard (RPS) requirements. The Tri-Dam Project also has capacity attributes to meet the State's Resource Adequacy Program's requirements. The Tri-Dam Project is forecasted to generate approximately 416,667 MWh annually based on the past five years of historical generation. This represents approximately 10% of SVP's 2021 retail sales. The generation will vary based on water availability. SVP staff is requesting that the City Council delegate authorization to the Ci...
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