REPORT TO COUNCIL
SUBJECT
Title
Action on Power Purchase and Sale Agreements between Silicon Valley Power and West Valley-Mission Community College District and SunPower Corporation, Systems [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure]
Report
BACKGROUND
West Valley-Mission Community College District (Mission College) is an electric retail customer of Silicon Valley Power (SVP), currently with 1.1 megawatts (MW) of solar output generating capacity installed on site. Mission College has submitted an interconnection application to install additional 2.5 MW of solar photovoltaic generation and 2 MW / 4 MWh battery energy storage system on its campus. Due to the size of its solar system exceeding the qualification for Mission College to be served under SVP Rate Schedule NM (Net Energy Metering "NEM" Schedule), and the potential for energy production from the generation facility to exceed the customer demand which would cause flows of power onto SVP's distribution system, it is necessary to define the commercial terms under which SVP will purchase this excess generation production under a wholesale power purchase and sale agreement.
NEM Service is offered to SVP's retail customers under Rate Schedule NM provided that the installed capacity of customer owned onsite renewable generation does not exceed 1000 kilowatts (kW) of generating capacity. With the Mission College's new facility, this 1000 kW limit will be exceeded, and the Mission College's system will not qualify for NEM and therefore will not be entitled to the annual payment for the excess solar output. However, it is still economically and environmentally beneficial in both parties' interests to move forward with the project under terms and conditions mutually agreed to by both parties. It was determined that the compensation for any excess solar production should be tied to the avoided cost of purchasing power at the wholesale market price that SVP would be...
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