REPORT TO COUNCIL
SUBJECT
Title
Action on Delegation of Authority to the City Manager to Negotiate and Execute the Third Phase Agreement with the Northern California Power Agency for a Power Purchase Agreement with South Sutter Water District
Report
COUNCIL PILLARS
Deliver and Enhance High-Quality Efficient Services and Infrastructure
Promote Sustainability and Environmental Protection
BACKGROUND
The City of Santa Clara's Electric Department, Silicon Valley Power (SVP), purchases a portion of the energy it supplies to the residents and businesses within the city. Senate Bill 100 requires SVP to meet the State of California Renewable Portfolio Standards (RPS), under which SVP must procure a specified percentage of its retail sales from renewable energy resources by a particular year.
Specifically, retail sellers and local publicly owned electric utilities must procure a minimum of its electricity products from eligible renewable energy resources at the following percentages: 44% of retail sales by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030.
Pursuant to 2.105.090(b) of the City Code, "any contract for the purchase or sale of water, electrical power, fuels for the generation of electrical power, wastewater and recycled water" are exempt from following the purchasing procedures under the City's Centralized Purchasing Program.
SVP is responsible for the purchase of electrical power either by a) entering into Power Purchase Agreements (PPA) with project developers through their direct offerings and/or b) through a request for proposal process. Each potential project may have unique characteristics that impact the value of the resource to SVP customers. Staff evaluates potential projects on locational value, shape of the generation output, environmental attributes, capacity attributes, operational flexibility, and viability.
Northern California Power Agency (NCPA) is a not-for-profit Joint Powers Agency whose membership includes ...
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