REPORT TO COUNCIL
SUBJECT
Title
Action on Adopting a Resolution to Delegate Authority to the City Manager to Execute Amendments to the United States Department of Energy Western Area Power Administration Sierra Nevada Region Contract for Electric Service Base Resource Contract 20-SNR-02364 for Calendar Years 2025 through 2054
Report
COUNCIL PILLAR
Promote Sustainability and Environmental Protection
BACKGROUND
The City of Santa Clara's Electric Department, Silicon Valley Power (SVP), purchases power generated at federally owned hydroelectric facilities that make up the Central Valley Project (CVP Base Resource) through a contract with the United States Department of Energy's (DOE) power market administrator, Western Area Power Administration (WAPA). On February 9, 2021, the City Council adopted a resolution authorizing the City Manager to execute Contract 20-SNR-02364 (hereafter referred to as "Base Resource Contract"). The Base Resource Contract is also referred to as the "United States Department of Energy Western Area Power Administration Sierra Nevada Region Contract for Electric Services Base Resource." The current Base Resource Contract began on January 1, 2025, and will expire on December 31, 2054.
The CVP Base Resource provides approximately 10% of the City's annual retail electricity sales during an average hydrological year. This energy comes from 100% carbon-free resources and helps maintain SVP's low carbon intensity of its electricity supply portfolio.
From time to time, WAPA works with its customers to increase the economic value of the CVP Base Resource through new programs or changing its operations. Some of the new processes or programs require an amendment to the Base Resource Contract.
DISCUSSION
Currently, SVP receives CVP Base Resource energy as an import from one balancing area, the Balancing Area of Northern California (BANC), to another balancing area, the California Independent System Operator (CAISO). The BANC is the balancing...
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