REPORT TO COUNCIL
SUBJECT
Title
Action on the First Amendment to the Power Purchase and Sale Agreement for Electricity from Qualifying Renewable Resources by and Between the City of Santa Clara and Ameresco Forward, LLC
Report
BACKGROUND
On May 25, 2010, the City of Santa Clara entered into a Power Purchase and Sale Agreement for Electricity with Ameresco Forward, LLC from the Forward Landfill electric generation facility located in Manteca, California, for a twenty-year term. The facility began operating in the California Independent System Operator (CAISO) balancing authority on February 22, 2014, and has a capacity of 4.2 megawatt (MW). The facility currently generates approximately 31,000 megawatt hours (MWh) of renewable energy annually.
DISCUSSION
On September 12, 2022, Ameresco Forward, LLC (Ameresco) met with SVP staff to discuss a possible termination of the Power Purchase and Sale Agreement. Ameresco stated that they were interested in converting the landfill electric generation facility to a renewable natural gas facility and would no longer be interested in selling the electricity to the City of Santa Clara if their development plans are approved.
Ameresco has proposed to amend the agreement to provide Ameresco an early termination right and allow it to terminate on or before December 31, 2025, if Ameresco gives six-months prior written notice to the City. In addition to this amount, Ameresco shall pay the City $29,167 for each full or partial month that is earlier than December 31, 2025. Ameresco will also have the option to extend the early termination date by one-year increments by paying the City $50,000 for each one-year extension. Ameresco is also required to pay the City $250,000 by the agreed upon early termination date, whether the agreement is terminated by 2025 or later.
The contract price for the Power Purchase and Sale Agreement is currently higher than other available options in today's energy market, so there would be approx...
Click here for full text