HomeMy WebLinkAboutD-3. Reassignment of PH Landfill Gas ProjectD-3
TO:
FROM:
DATE:
SUBJECT:
SUMMARY:
CONSENT CALENDAR
HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
GEORGE F. MORROW, DIRECTOR OF UTILITIES
OCTOBER 23,2017
ASSIGNMENT OF PUENTE HILLS LANDFILL GAS-TO-ENERGY PROJECT
TO CITY OF BANNING
In February 2017, Staff obtained the Utility Board's authorization to enter in non-binding talks with
the City of Banning regarding potential reassignment of Azusa Light & Water's (ALW) share of the
Puente Hills renewable energy project to Banning. Staff has concluded discussions with Banning
and evaluated effects of the potential reassignment on the Azusa resource portfolio and RPS
compliance. Based on the foregoing, Staff recommends and seeks the Board's authority to reassign
Azusa's 1 MW share of the Puente Hills project to Banning. The proposed action will authorize the
reassignment of ALW's 1 MW share of the Puente Hills Project contract to the City of Banning.
RECOMMENDATION:
Staff recommends the Utility Board approve the following action:
1) Authorize the Director of Utilities to undertake definite steps to terminate ALW's
Puente Hills Power Sales Agreement with the Southern California Public Power
Authority (SCPPA) and complete the reassignment of ALW's 1 MW share of the
Puente Hills Project contract to the City of Banning, including executing and
processing any required documentation in a form acceptable to the City Attorney.
DISCUSSION:
In 2014, the Utility Board approved a Power Sales Agreement with SCPPA for a 1 MW share of the
Puente Hills Project. Puente Hills is one of eleven (11) projects in ALW's renewable power
portfolio (RPS). The project is an existing gas-to-energy facility powered by landfill gases
(primarily methane). It is owned and operated by the Los Angeles County Sanitation District.
UB-15
APPROVED
UTILITY BOARD
10/23/2017
Puente Hills Landfill Gas Project
October 23, 2017
Page 2
Several of the solar photovoltaic projects in Azusa Light & Water's (ALW's) RPS portfolio are
considerably more efficient than originally anticipated resulting in energy production in excess of
ALW's RPS requirements. Barring any major malfimction(s) of such facilities, the RPS over
production trend is expected to continue. Coincidentally, the City of Banning (Banning), which is
looking to purchase additional renewable energy, indicated an interest in potentially acquiring
ALW's share of Puente Hills.
In February 2017, Staff obtained the Utility Board's authority to engage in non-binding talks with
the City of Banning regarding potential transfer of ALW's share of the Puente Hills project to
Banning. Our talks with Banning have concluded and Banning is ready to take ALW's 1 MW share
of the project.
Accordingly, Staff is requesting the Utility Board's authorization to undertake definitive steps to
terminate the SCPPA PSA for Puente Hills and conclude the project transfer process by January 1,
2018. Note that if ALW's RPS portfolio production were to underperform, it is believed that
needed RPS energy (whether short or long-term) could be procured at a reasonable cost.
FISCAL IMPACT;
There is no fiscal impact associated with the recommended action.
Prepared by: Reviewed and Approved:
Yarek Lehr, P.E. George F. Morrow
Assistant Director of Resource Management Director of Utilities
Reviewed and Approved:
Don Penman
Interim City Manager
UB-16