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Home My WebLink AboutResolution No. UB- 12-C88RESOLUTION NO. 12-C88 A RESOLUTION OF THE CITY COUNCIL AND UTILITY BOARD OF THE CITY OF AZUSA, CALIFORNIA, ADOPTING A RENEWABLE PORTFOLIO STANDARD (RPS) PROCUREMENT PLAN IN COMPLIANCE WITH STATE LAW (SBX1 2) WHEREAS, the City of Azusa's Light & Water Department ("AL&W") maintains an electric generation and distribution system for furnishing electricity to residents and businesses of the City of Azusa ("Azusa"); and WHEREAS, AL&W, a publicly -owned utility, provides reliable, low cost, environmentally responsible power to residents and businesses of the Azusa community; and WHEREAS, the Azusa Utility Board is the governing body of its local publicly - owned electric utility with the authority to adopt and implement the requirements of state law; and. WHEREAS, the Azusa Utility Board is empowered by law to, among other, determine what the reasonable cost of service, return on utility investment, and other prudent costs of performing utility business and ensuring that utility operations are proper, fair and adequate; and. WHEREAS, the Azusa Utility Board is empowered by law to set rates for its utility's customers, to include rates for electricity; and. WHEREAS, on April 12, 2011 Governor Brown signed the California Renewable Energy Resources Act (SBXI 2) with an effective date of December 10, 2011, which establishes the state's renewable portfolio standard by requiring California's investor- owned utilities, as well as publicly -owned utilities, to procure twenty percent (20%) on average during the years 2011-2013, twenty five percent (25%) by 2016 and thirty-three percent (33%) by 2020 and thereafter of their energy from renewable sources; and WHEREAS, SBX1 2 sets interim targets for RPS compliance, expands the roles of the California Energy Commission and the California Air Resources Board, and places requirements on the types of renewable resources eligible for compliance; and WHEREAS, SBX1 2 assigns to the Azusa Utility Board, "the governing board of a local publicly owned electric utility", the administration and enforcement of AL&W's compliance with the statute. WHEREAS, on November 28, 2011, the Azusa Utility Board adopted the City Azusa Renewable Portfolio Standard Enforcement Program. 1 NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY FIND AS FOLLOWS: Section 1. Consistent with applicable provisions of SBXI 2 the Utility Board/City Council of the City of Azusa herby accepts and asserts its role as administrator and enforcer of Azusa Light & Water's compliance with the statute. Section 2. The Utility Board/City Council of the City of Azusa hereby approves and adopts the attached Azusa Renewable Portfolio Standard Procurement Plan. Section 3. The Director of Utilities, or his designee, is hereby authorized and directed to implement and administer the Azusa Renewable Portfolio Procurement Plan. PASSED, APPROVED AND ADOPTED this 26`h day of November, 2012. Joseph R. Rocha, Mayor ATTEST: Vera Men ri�. i I HEREBY CERTIFY that the foregoing Resolution No. 12-C88 was duly adopted by the City Council/ Utility Board of the City of Azusa at a regular meeting thereof held on the 26"' day of November, 2012. AYES: COUNCIL MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE 011PAM IVAN ra M1 ,. E AZUSA Renewable Portfolio Standard Procurement Plan Effective November 26, 2012 (Subject to changes and modifications, as required or needed) (1) During the First RPS Compliance Period (1/1/2011 — 12/31/2013) Azusa will procure sufficient combined volumes of renewable energy products to meet obligations under Public Utilities Code (PUC) §399.30(b)(1) and PUC §399.30 (c)(1)-20%in total combined compliance products, measured as a percentage of retail load. Such procurements shall be subject to limitations and/or allowances provided for in PUC § 399.30 (a), PUC § 399.30 (d) and PUC § 399.30 (m), as such may be invoked by the Azusa Board. (2) As of the date of this plan, Azusa is an over -resourced utility and as such it does not require additional energy to balance its load. Azusa's power and associated fuel contracts do not provide for backing -off the energy and/or associated fuels. Based on Azusa's forward load and resource adequacy outlook, Azusa expects to be either fully resourced, or over -resourced, till the end of CY 2014. (3) Independent of its current resource status, Azusa is and has been procuring Portfolio Category 1 (PCCI) renewable energy under existing contracts. Based on Azusa's load forecasts and the procurement of the PCCI type renewable energy under the existing contracts in CY 2011, estimated procurements in CY 2012, and projected procurements in CY2013, Azusa estimates to purchase 18.90% of PCCI type energy (inclusive of 1.66% of Hoover repowering) by the end of the First Compliance Period ending on 12/31/2013. (4) Consistent with Sections (1), (2), and (3) above, to the extent Azusa will have any unmet year -ahead or quarter -ahead generation needs during the First Compliance Period, Azusa shall procure an appropriate balance of PCCI, PCC2, and PCC3 (RECs) products to meet the 20% RPS. (5) Consistent with Sections (1), (2), and (3), and (4) above, to the extent Azusa will not have any unmet year -ahead or quarter -ahead generation needs during the First Compliance Period, Azusa shall procure PCO (RECs) product such that when combined with Azusa's grandfathered PCCI (and PCC2 if any) procurements, the overall 20% RPS is met. (6) Consistent with the statute, the Azusa Board shall have the right to establish RPS procurement limits based on the overall cost of RPS compliance cost or a proportional weigh or impact, as measured by % of the overall cost of Azusa Power Supply or impact on Azusa retail rates. (7) If circumstances beyond the control of Azusa, as stipulated in PUC §399.15(b)(5), interfere with the acquisition of renewable energy during Compliance Period 1, then the Azusa Board may find reasonable cause for (a) a delay in timely compliance with RPS procurement requirements in CPI and/or (b) a reduction in the portfolio balance requirement for PCCI (and/or PCC2 if any) during CPI. (8) Azusa shall continue reviewing its unmet long-term generation needs for Compliance Periods 2 and 3, and address such consistent with applicable RPS statutes, regulations, and this plan. (9) Consistent with the RPS statute, this plan shall be administered consistent with Azusa RPS Enforcement Program established by the Azusa Board in 2011. (I O)Consistent with the RPS statute, this plan may be modified by the Azusa Board at any time, provided that appropriate public notifications(s) are posted. RPS procurement decisions flow chart Yes Are the "base" volumetric RPS procurement requirements satisfied? I No I No Buy requisite PCCI, PCC2 energy, and/or RECs, up to 20% combined, but not to exceed the "under the curve" energy fit or RPS cost limitations, whichever comes first Yes If RPS cost limits Yes are established, Is the short due to delayed projects? have they been exceeded? No 7 I Re- Evalu Yes Yes "base ate If RPS cost limits are established, Can the RPS short" be ? satisfied by RECs only? have they been again exceeded? next No I Bay REcs No � year up to 20% 1 Yes No Planning forward, is there a volumetric room under any portion(s) of Azusa load if RPS cost limits e established, are curves (years, seasons, on-pk/off-pk) to have they been fit additional RPS enerev? exceeded? No Buy RECs Yes up to 20% Yes If RPS cost limits are established, have they been exceeded? No Buy requisite PCCI, PCC2 energy, and/or RECs, up to 20% combined, but not to exceed the "under the curve" energy fit or RPS cost limitations, whichever comes first