NVF:BCK:CLS
8/23/2023
T-31685.004 \ 2047723 1
Council Agenda: 9/12/2023
Item No.: 6.1
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SAN JOSE AUTHORIZING THE DIRECTOR OF THE
COMMUNITY ENERGY DEPARTMENT OR THE
DIRECTOR’S DESIGNEE TO NEGOTIATE AND EXECUTE
A LONG-TERM AGREEMENT WITH PACIFIC GAS AND
ELECTRIC COMPANY TO BUY RENEWABLE ENERGY
FOR A TERM OF NO MORE THAN 20 YEARS, FROM
2023 THROUGH 2043, IN AN ESTIMATED AMOUNT OF
$10,000,000 ANNUALLY AND NOT TO EXCEED
$150,000,000 IN AGGREGATE, TO BE PAID SOLELY
FROM THE SAN JOSE CLEAN ENERGY OPERATING
FUND AND SUBJECT TO THE ANNUAL
APPROPRIATION OF FUNDS; AND REPEALING
RESOLUTION NO. RES2023-154
WHEREAS, on May 16, 2023, the Council of the City of San José (“City”) adopted Resolution No. RES2023-154, which authorized the Director of the Community Energy Department or the Director’s designee to negotiate and execute a long-term agreement with Pacific Gas and Electric Company (“PG&E) to buy renewable energy for a term of no more than 20 years from 2023 through 2043, in an amount not-to-exceed $7,500,000 annually and $150,000,000 in aggregate, to be paid solely from the San José Clean Energy Operating Fund and subject to the annual appropriation of funds; and
WHEREAS, on May 22, 2023, the Community Energy Department executed the long- term agreement with PG&E to purchase renewable energy and discovered that the annual not-to-exceed language in Resolution No. RES2023-154 did not align with the variability of the executed agreement; and
WHEREAS, on August 3, 2023, the Community Energy Department’s Risk Oversight Committee approved a recommendation to City Council that changes the annual not-to- exceed amount in the long-term agreement with PG&E to an estimate and adjusts it from $7,500,000 to $10,000,000; and
NVF:BCK:CLS
8/23/2023
T-31685.004 \ 2047723 2
Council Agenda: 9/12/2023
Item No.: 6.1
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
WHEREAS, staff recommends that the City repeal Resolution No. RES2023-154 and authorize the Director of the Community Energy Department or the Director’s designee to negotiate and execute a long-term agreement with PG&E to buy renewable energy for a term of no more than 20 years, from 2023 through 2043, in an estimated amount of $10,000,000 annually and not to exceed $150,000,000 in aggregate, to be paid solely from the San José Clean Energy Operating Fund and subject to the annual appropriation of funds; and
WHEREAS, the City wishes to repeal Resolution No. RES2023-154 and adopt this new resolution authorizing the negotiation and execution of a long-term agreement with PG&E;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
1. The Director of the Community Energy Department or the Director’s designee is hereby authorized to negotiate and execute a long-term agreement with Pacific Gas and Electric Company to buy renewable energy for a term of no more than 20 years, from 2023 through 2043, in an estimated amount of $10,000,000 annually and not to exceed $150,000,000 in aggregate, to be paid solely from the San José Clean Energy Operating Fund and subject to the annual appropriation of funds; and
2. Resolution No. RES2023-154 is hereby repealed.
NVF:BCK:CLS
8/23/2023
T-31685.004 \ 2047723 3
Council Agenda: 9/12/2023
Item No.: 6.1
DRAFT – Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2023, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk