HomeMy WebLinkAboutD-1.1. Approval of Renewable Power Purchase and Sale Agreement between City of Azusa and Mesa Wind Power Corp.D-1----------tf
TO:
FROM:
DATE:
SUBJECT:
AZUSA LIGHT & WA.Tll
SCHEDULED ITEM
HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
MANNY ROBLEDO, DIRECTOR OF UTILITIES C-yv\ l1L
MAY 28, 2019
APPROVAL OF A RENEW ABLE POWER PURCHASE AND SALE
AGREEMENT BETWEEN CITY OF AZUSA AND MESA WIND POWER
CORPORATION
BACKGROUND:
To maintain clean air standards, reduce greenhouse gas emissions, and provide for a sustainable
energy future, California has established Renewable Portfolio Standards (RPS) that require all electric utilities to serve a minimum percentage of retail sales of electricity from eligible renewable
energy resources, such as wind, solar, geothermal, and small hydro. The latest target established by
Senate Bill 100 in 2018 requires Azusa to serve a minimwn of 60% of elec.-icity sales from
renewable energy resources by 2030. Azusa Light and Water (ALW) has augmented its renewable
resource portfolio since 2003, and it currently serves 32.5% of retail sales from renewable resources. The proposed action would increase Azusa's RPS to over 80% starting in 2022 and settle
out at 67% beyond 2030 as existing power purchase agreements expire, which is in full compliance
with State law and exceeds the statutory RPS requirement.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Adopt Resolution 2019-UB-05 to approve a long-term Renewable Power Purchase
and Sale Agreement between the City of Azusa and Mesa Wind Power Corporation
for the purchase of 30 Megawatts (MW) of wind energy over a period of 25 years.
ANALYSIS:
Renewable Portfolio Standard History
Under California law all load serving entities are mandated to serve a specific fraction of their retail
load with renewable energy resources, which is called a Renewable Portfolio Standard (RPS). The
APPROVED
UTILITY BOARD
05/28/19
Approval of Mesa Wind Renewable PP A
May 28, 2019
Page 2
initial RPS was signed on April 12, 2011 under Senate Bill XI 2. Prior to that ALW and other
utilities established their own renewable energy goals, which were around 20%. SB Xl 2 mandated
all electric utilities and entities serving electric load in California produce and/or procure specific
volumes of renewable energy products, as measured by percentage of retail electricity sales.
The law further stipulated that the minimum volume of renewable energy had to be derived
from resources interconnected within, or first scheduled directly into California. These would be
called Portfolio Content Category 1 (PCC 1) resources. Other amounts of procured energy could be
satisfied by imported renewable energy (Portfolio Content Category 2) and/or by "unbundled"
renewable energy credits (Portfolio Content Category 3). In 2015, the state Legislature passed
SB 350, "The Clean Energy and Pollution Reduction Act" which set a 50% clean energy standard to
be achieved by 2030. That bill also set new requirements for doubling energy efficiency and for
wide-scale transportation electrification. In 2018 the state Legislature passed SB 100 which set a
100 percent carbon free goal by 2045 and a 60% renewable energy requirement by 2030, which is
shown in more detail as follows, including RPS targets and minimum portfolio content category
requirements by year:
2011 20% 50% 25% 25%
2012 20% 50% 25% 25%
2013 20% 50% 25% 25%
2014 20% 65% 20% 15%
2015 20% 65% 20% 15%
2016 25% 65% 20% 15%
2017 27% 75% 15% 10%
2018 29% 75% 15% 10%
2019 31% 75% 15% 10%
2020 33% 75% 15% 10%
2021 75% 15% 10%
2022 44% 75% 15% 10%
2023 75% 15% 10%
2024 75% 15% 10%
2025 75% 15% 10%
2026 52% 75% 15% 10%
2027 75% 15% 10%
2028 75% 15% 10%
2029 60% 75% 15% 10%
2030 75% 15% 10%