CITY OF ALAMEDA RESOLUTION NO.______________
APPROVING A SECOND A MENDMENT TO THE POWER
PURCHASE AGREEMENT BETWEEN AMERESCO KELLER
CANYON, LLC (“AMERESCO”) AND ALAMEDA MUNICIPAL POWER
(“AMP”) DECREASING AMERESCO’S POWER OUTPUT
OBLIGATIONS IN EXCHANGE FOR COMPENSATION TO AMP FOR
IT’S ADMINISTRATIVE COSTS IN AN AMOUNT NOT TO EXCEED
$250,000 PER YEAR, A PAYMENT TO AMP NOT TO EXCEED
$135,000 PER YEAR TO COMPENSATE AMP FOR ITS LOSS OF
RESOURCE ADEQUACY CAPACITY, AND COMPENSATION TO
AMP FOR CALIFORNIA INDEPENDENT SYSTEM OPERATOR
(CAISO) CHARGES IN AN AMOUNT NOT TO EXCEED A TO TAL OF
$50,000.
WHEREAS, on August 15, 2005, the Public Utilities Board (Board) adopted Resolution No. 4680 approving an agreement between Ameresco Keller Canyon, LLC (Ameresco) and Alameda Municipal Power (AMP), formerly Alameda Power and Telecom, for the purchase of renewable energy from a proposed landfill gas generating project located at the Keller Canyon landfill in Pittsburg, CA; and
WHEREAS, on August 16, 2005, the City Council Accepted the Board’s Recommendation and approved the agreement between Ameresco and AMP for the purchase of power from the landfill gas generating project located at the Keller Canyon landfill in Pittsburg, CA; and
WHEREAS, on March 17, 2008, the Board adopted Resolution No. 4776 approving A First Amendment to the PPA between Ameresco and AMP for an increase of the original contract energy price of $59.00/MWh with a 1.5 percent annual escalator to a new price of $62.50/MWh; and
WHEREAS, on March 18, 2008, the City Council accepted the Board’s recommendation and approved the First Amendment to the Power Purchase Agreement with Ameresco; and
WHEREAS, the Keller Canyon landfill gas generator has an installed net capacity of 3.63 net MW that is shared equally with the City of Palo Alto under identical power purchase agreements with Ameresco , and is a baseload energy facility that became commercially operational on August 1, 2009; and
WHEREAS, the current contract price is over $76/MWh and AMP expects a reduction of 12 GWh/year of renewable energy that represents less than 3.5 percent of total forecasted load for 2023; and
WHEREAS, Ameresco intends to design, build, own, and operate gas processing facilities that will process landfill gas for sale to third parties and Ameresco desires to use all or a portion of the power output for these facilities; and
WHEREAS, if Ameresco does not use 100 percent of the output to power, any remaining output shall be delivered for purchase by AMP of AMP’s percentage share; and
WHEREAS, Ameresco will pay $250,000/year (prorated for partial years) and will also pay for the loss of resource adequacy capacity subject to a cap of $135,000/year for the remainder of the term of the purchase power agreement with the implementation of the amendment; and
WHEREAS, staff has evaluated the financial impact and energy resource mix of the requested decrease of power output for sale and purchase and finds that it is in the interest of AMP due to forecasted lower replacement costs and cost savings to AMP’ and
WHEREAS, ON February 22, 2022 the Public Utilities Board of the City of Alameda unanimously adopted Resolution 5198 recommending that the City Council appro ve Amendment No. 2 to the Power Purchase Agreement between Ameresco Keller Canyon, LLC (“Seller”) and Alameda Municipal Power (“Buyer”) to decrease the Seller’s obligation to output power for sale and purchase to Buyer in exchange for compensation to Buyer for its administrative costs in an amount not to exceed $250,000 per year, a payment to Buyer not to exceed $135,000 per year as compensation for Buyer’s loss of resource adequacy capacity, and compensation to Buyer for CAISO charges in an amount not to exceed a total of $50,000, and to authorize the General Manager to execute Amendment no. 2.
NOW, THEREFORE, BE IT RESOLVED that the City Council approves a second amendment to the Power Purchase Agreement between Ameresco Keller Canyon, LLC (“Ameresco”) an d Alameda Municipal Power (“Amp”) decreasing Ameresco’s power output obligations in exchange for compensation to AMP for its administrative costs in an amount not to exceed $250,000 per year, a payment to AMP not to exceed $135,000 per year to compensate AMP for its loss of Resource Adequacy Capacity, and compensation to AMP for California Independent System Operator (CAISO) charges in an amount not to exceed a total of $50,000.
* * * * * *
I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 5th day of April 2022, by the following vote to wit:
AYES
NOES:
ABSENT:
ABSTENTIONS:
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the seal of said City this 6th day of April 2022.
Lara Weisiger, City Clerk
City of Alameda
APPROVED AS TO FORM:
Yibin Shen, City Attorney
City of Alameda