201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: FEBRUARY 3, 2026
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: POWER PURCHASE AGREEMENTS WITH CAMERON RIDGE
LLC AND ALTA OAK REALTY, LLC FOR RENEWABLE WIND
ENERGY
ATTACHMENT (Y/N): YES ITEM # 06
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council by Motion:
1. Approve a Renewable Power Purchase Agreement (PPA) with Cameron Ridge LLC to purchase wind-generated energy and associated renewable and capacity attributes from the Cameron Ridge Project, with a ten-year term, at an average annual cost of $12.8 million (term aggregate of $128 million);
2. Approve a second PPA with Alta Oak Realty, LLC to purchase wind-generated energy and associated renewable and capacity attributes from the Zephyr Park and Oak Creek Projects, with a ten-year term, at an average annual cost of $5.7 million (term aggregate of $57 million); and
3. Authorize the Public Utilities General Manager, or designees, on behalf of Anaheim, to (a) execute the PPAs; (b) execute any amendments or restatements to the PPAs that are cost-neutral/reducing or that involve only minor administrative cost increases; (c) execute all related or implementing documents to the PPAs, including documents contemplated by the PPAs, assignments, collateral assignments, power scheduling agreements, and scheduling coordinator agreements; and (d) take all actions necessary or advisable to implement and administer the PPAs.
DISCUSSION:
At its meeting on January 28, 2026, the Public Utilities Board recommended that the City Council approve these actions.
Anaheim Public Utilities (APU) continues to make progress towards meeting California’s clean energy goals of 60% renewable power by 2030 and 100% carbon-free resources by 2045, as required by Senate Bill (SB) 350 and reaffirmed by SB 1020. APU currently receives renewable energy from solar, wind, landfill gas, geothermal, and small hydro resources. With the proposed wind project, APU’s Renewable Portfolio Standards will reach approximately 42% in 2026.
Power Purchase Agreements with Cameron Ridge LLC and Alta Oak Realty, LLC for Renewable Wind Energy February 3, 2026
In March 2025, APU issued a Request for Proposals (RFP) seeking renewable energy and energy storage resources, resulting in 16 proposals submitted. Terra-Gen Development Company, LLC (Terra-Gen) submitted a proposal from its Legacy Wind portfolio, specifically, existing and operational facilities located near Tehachapi, California. Terra-Gen’s proposal includes three wind energy facilities (Cameron Ridge, Zephyr Park, and Alta Oak) providing a combined generating capacity of 78.47 Megawatts (MW). These resources are expected to produce approximately 175,000 Megawatt-hours (MWh) annually, which is enough renewable energy to power 29,000 Anaheim homes.
In addition to their ability to start delivering energy in February 2026, other positive attributes of Terra-Gen’s proposal include its location and existing interconnection with the regional transmission system, inclusion of Renewable Energy Credits (RECs) for compliance with state clean energy mandates, ability to meet resource adequacy (RA) requirements for grid resilience, historical performance record, and fixed cost pricing that is consistent with current market prices.
Terra-Gen is the parent company of Cameron Ridge LLC and Alta Oak Realty, LLC, and has operated the three facilities since 1999, along with other renewable energy projects throughout the western United States. There are two separate PPAs because each entity independently owns and operates the wind generation facilities. The Cameron Ridge facility includes 78 units, and the Zephyr Park and Alta Oak facilities include 43 units, for a total of 121 wind turbines.
The pricing terms include the energy delivered from the wind resources along with their renewable attributes and RA. Approximately 72% of the cost is for energy and RA, while the remaining 28% is for the renewable attributes. The combined estimated annual cost is $18.5 million over the ten-year term. Inclusion of energy and RA attributes saves $6.7 million annually that would otherwise be procured separately, resulting in a net cost of $11.8 million annually. APU will only pay for power generated and delivered and will have no cost obligation for non-operational wind turbines.
IMPACT ON BUDGET:
Sufficient funds are included in APU’s Fiscal Year 2025/26 restricted Electric Utility Fund budget, and future years are subject to City Council approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. Renewable Power Purchase Agreement with Cameron Ridge LLC
2. Renewable Power Purchase Agreement with Alta Oak Realty, LLC