HomeMy WebLinkAboutF-3. Renewal Power from Puente Hills Bio-Methane Facility (landfill) Information Item
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INFORMATION I1'LM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY`
BOARD
FROM: GEORGE F. MORROW,DIRECTOR OF UTILITIES
DATE: JANUARY 27,2014
SUBJECT: POTENTIAL INTEREST IN PROCURING RENEWABLE POWER FROM
PUENTE HILLS BIO-METHANE FACILITY(LANDFILL)
In response to Southern California Public Power Authority's recent RFP for Renewable power
and associated services,the County of Los Angeles presented a proposal to sell power from their
existing landfill generation facility located about 17 miles East from Los Angeles(Puente Hills).
The facility is currently under contract with Southern California Edison which agreement sunsets
at the end of 2016. As a result, the County has proposed to begin deliveries to SCPPA in 2017
for a term of about thirteen years with potential option(s)to extend. The current facility capacity
rating is about 43 MW which is expected to decline over the potential term of the delivery.
Upon receiving the proposal, SCPPA conducted a poll of interest among its members and began
an exploratory negotiation of the price and delivery terms with the County. The Cities of
Pasadena, Vernon, Banning and Colton stated their potential interest in the project and Riverside
is also considering.
There are a number of reasons why Azusa may also have interest in the project:
1. Continued pursuit of the state's 33%renewable energy by 2020 mandate
2. Need for"base load"energy post San Juan divestiture.
3. Project is located in the SP15 zone of the ISO system where there is most acute shortage
of energy and capacity(local and system)due to San Onofre shutdown
4. Since the project is operational there is NO development risk
Staff will continue its involvement in SCPPA's negotiations of the proposal, and if the final
terms of the proposal have merit,we will bring it for the Utility Board's consideration.
Prepared by: Yarek Lehr,Assistant Director of Resource Management
UB-52