HomeMy WebLinkAboutE-5.1. Approval of First Amendment to Long Term Purchase Agreement_ApprovedCONSENT ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA
UTILITY BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: NOVEMBER 22, 2021
SUBJECT: APPROVAL OF FIRST AMENDMENT TO LONG TERM PURCHASE
AGREEMENT BETWEEN CITY OF AZUSA AND SAN GABRIEL
VALLEY MUNICIPAL WATER DISTRICT
BACKGROUND:
The City of Azusa (Azusa) and San Gabriel Valley Municipal Water District (SGVMWD)
entered into a Long Term Power Purchase Agreement in 2006 for the output of the
hydroelectric power plant located in San Dimas, California. SGVMWD has supplied Azusa
with renewable energy from the generating facility for 16 years at a competitive price
indexed to natural gas prices, and Staff recommends extending the term of the agreement for
up to 16 additional years.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Approve the First Amendment to the Long Term Power Purchase Agreement between
City of Azusa and San Gabriel Valley Municipal Water District.
ANALYSIS:
Azusa in 2006 signed a long term agreement with SGVMWD in which Azusa would be the
sole offtaker of small hydroelectric generation. The small hydro unit located in San Dimas
has delivered up to its maximum output of 1.05 MWh when hydro conditions permit. On an
annual basis Azusa received the generation output and claimed the environmental green
attributes from the unit. The agreement allowed for six annual extensions after the initial
term of ten years. In the interest of both parties all six extensions were agreed upon and
deliveries continued. As there is no additional allowance for the extension of the agreement
Azusa and SGVMWD staff entertained and negotiated a new amendment to the existing
long term agreement. Both parties agreed to support and recommend an amendment to
continue deliveries for another ten years with six annual extensions. Parties agreed to leave
all other existing terms as is. Azusa has enjoyed the business relationship with a local
supplier such as SGVMWD and recommends the approval of the proposed amendment.
E-5Approved
Utility Board
11/22/2021
Amendment of San Dimas Hydro PPA
November 22, 2021
Page 2
FISCAL IMPACT:
Funds will be proposed to be budgeted in future fiscal years.
Prepared by: Reviewed and Approved:
Richard Torres Manny Robledo
Assistant Director of Utilities Director of Utilities
Resource Management
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachment:
1) First Amendment to Long Term Power Agreement