REPORT TO COUNCIL
SUBJECT
Title
Delegation of authority to the City Manager to negotiate and execute the Third Phase Agreement with Northern California Power Agency (NCPA) for a Power Purchase Agreement (PPA) with South Feather Water and Power Agency (SFWPA)
Report
COUNCIL PILLAR
Deliver and Enhance High-Quality Efficient Services and Infrastructure
Promote Sustainability and Environmental Protection
BACKGROUND
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.
The City of Santa Clara's Electric Department, Silicon Valley Power (SVP) purchases energy to supply the residents and businesses within the City of Santa Clara. Senate Bill 100 (SB 100) approved on September 10, 2018, requires that SVP meet the State's Renewable Portfolio Standards (RPS). Under the RPS, SVP must procure a specified percentage of its retail sales from renewable energy resources by a particular year.
SB 100 requires retail sellers and local publicly owned electric utilities to procure a minimum 44% of retail sales by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030 of electricity products from eligible renewable energy resources.
SVP meets its Renewable Portfolio Standards goals by purchasing electrical power either a) through Power Purchase Agreements (PPA)s with project developers through their direct offerings or through Joint Powers Agency (JPA) offerings and/or b) through a request for proposal process. Each potential PPA 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, and operational flexibility and viability.
NCPA is a not-for-profi...
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