1 RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA, AUTHORIZING A 30-YEAR POWER SALES AGREEMENT WITH
SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY FOR THE PURCHASE OF 25 MW (OR EQUIVALENTLY, AN 8.3% ENTITLEMENT SHARE OF THE 300
MW CONTRACT CAPACITY) OF RENEWABLE SOLAR ENERGY AND
ENVIRONMENTAL ATTRIBUTES FROM THE MILFORD SOLAR II PROJECT,
AND FINDING THAT THE PROJECT IS EXEMPT FROM THE REQUIREMENTS
OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Glendale (City) is a member of the Southern California Public Power Authority (SCPPA), a Joint Powers Authority formed in 1980 to facilitate joint power and transmission project for the benefit of Southern California Municipalities; and
WHEREAS, in 2023, SCPPA launched a Request for Proposals (RFP) process for Renewable Energy Resources and Energy Storage Solutions, soliciting competitive proposals for renewable energy projects or products consistent to the California Renewable Energy Resources Program; and
WHEREAS, Long Road Energy Holdings, LLC’s proposal for Milford Solar Phase II was selected through SCPPA’s competitive procurement process; and WHEREAS, after negotiations between SCPPA, Long Road Energy Holdings, LLC and the participating members LADWP, City of Burbank and City of Glendale, on January 30, 2025, SCPPA through a resolution, authorized execution and delivery of a Power Purchase Agreement (PPA), Power Sales Agreements (PSAs) between SCPPA and each of the participating members, and an Option Agreement with Milford Solar Phase II, LLC; and
WHEREAS, the 300 MW solar facility is located in Beaver County, Utah, and the energy will be delivered at the Intermountain Power Project (IPP) switchyard; and
WHEREAS, The Power Purchase Agreement establishes the commercial, operational and legal terms of the energy procurement from Milford Solar Phase II, LLC to SCPPA for a 30-year term, commencing on the facility's commercial operation date on December 31, 2026; and
WHEREAS, beginning on commercial operation date, the price for delivered energy under the Power Purchase Agreement, including all associated environmental attributes and capacity rights is fixed at $37.75 per megawatt-hour (MWh), with no escalation over the 30-year term, subject to a Change in Law provision in the Power Purchase Agreement which allows for price adjustment in limited circumstances as set forth in the Acting General Manager of GWP’s Report to Council dated June 3, 2025 (Report); and
2 WHEREAS, The Milford Solar II project includes a structured purchase option that provides SCPPA with the opportunity to acquire the facility during specific intervals throughout the 30-year term of the Power Purchase Agreement, including the 10th and 15th anniversaries of the project’s COD and every five years thereafter; and
WHEREAS, the total annual delivery from the Milford Solar II project will be approximately 813,722 MWh, with Glendale’s 8.3% share equating to roughly 67,539 MWh annually; and
WHEREAS, payments to SCPPA will be based on monthly invoices reflecting energy charges, direct and indirect Administrative and General cost, and pass through Project Management cost, and any other ancillary charges applicable to Glendale’s 8.3% entitlement share as set forth in detail, along with the other conditions, in the Report; and
WHEREAS, as noted in the Report, Milford Solar II project is expected to increase GWP’s renewable energy portfolio content by approximately 7%, advancing Glendale’s clean energy goals, and attributes to City of Glendale’s intent to achieve 100% clean, renewable, or non-carbon-emitting energy excluding renewable biofuels not already permitted or approved, by no later than 2035, as set forth in Resolution No. 22-125 adopted by City Council on August 16, 2022; and
WHEREAS, in accordance with California Environmental Quality Act (CEQA) provisions, it has been determined that entering into the Power Sales Agreement with SCPPA to purchase power as described herein and the Report is exempt from CEQA pursuant to California Public Resources Code, Section 21065, and Section 15061(b)(3) of the CEQA Guidelines, as it would not result in a direct or reasonably foreseeable indirect change in the physical environment; moreover, the Milford Solar II project is exempt from CEQA pursuant to Section 15277 of the CEQA guidelines since it is located outside of the state of California and the project developer is required to obtain all permits, including all necessary environmental review and permitting for the construction and operation of the project.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA:
Section 1. The recitals above are true and correct and incorporated herein.
Section 2. The City Council does hereby authorize the City Manager, or designee, to execute and deliver the Power Sales Agreement with SCPPA, substantially in the form set forth in Exhibit 1 to the Report, for the purchase of 25 MW of renewable solar energy (or equivalently, an 8.3% entitlement share of the 300 MW contract capacity) together with environmental attributes. The form of the Power Sales Agreement shall be subject to the approval of the City Attorney. 3 Section 3. Each of the City Manager, the Acting General Manager of GWP, and any other officer of the City, is hereby authorized to execute and deliver and any all other documents and instruments and to do and cause to be done any and all acts and things necessary or advisable for carrying out the transaction contemplated by this Resolution, including but not limited to the negotiation of an agreement or arrangement for the transmission and delivery of the energy associated with the Milford Solar II Project to Glendale; provided, however, that exercise of a Purchase Option shall require approval of the City Council; and provided further that the execution of a transmission agreement for the Milford Solar II Project shall be subject to the GWP Trading Authority Policy if necessary, or otherwise through the City’s existing transmission rights.
Section 4. The energy and environmental attributes acquired from the Power Sales Agreement shall be credited towards GWP’s Renewable Portfolio Standard.
Section 5. Payment for Glendale’s obligations under the Power Sales Agreement shall be payable solely from a special fund, to wit, the Electric Works Revenue Fund, and not from the general revenue of the City of Glendale, and the Interim Director of Finance, or his designee, upon proper certification, is authorized and directed to draw demands on the Electric Works Revenue Fund over the term of the Power Sales Agreement, in payment of the obligations incurred by such Power Sales Agreement.
Section 6. The City Council hereby finds that said action is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 21065 of the California Public Resources Code, and Sections 15061(b)(3) and 15277 of the CEQA Guideline because the City is purchasing power from a solar project and is not the project developer or issuer of project entitlements for development.
Adopted by the Council of the City of Glendale on this _____ day of __________________, 2025.
________________________________
Mayor
ATTEST:
_____________________________________
City Clerk
4 STATE OF CALIFORNIA ) SS.
COUNTY OF LOS ANGELES )
I, Suzie Abajian PhD, City Clerk of the City of Glendale, hereby certify that the foregoing Resolution No. ___________ was adopted by a majority vote of the Council of the City of Glendale, California, at a regular meeting held on the ______ day of ______________________, 2025, and that the same was adopted by the following vote:
Ayes:
Noes:
Absent:
Abstain:
________________________
City Clerk