9116/25 Item#7
City Council
CITY OF,
1852
THE MISSION CITY
Nico Procos, Director of SVP
Agenda Item No. 7 (#25-746)
August 19th, 2025
SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Agenda
Uses of a Battery Energy Storage System
Trolley Battery Energy Storage System (BESS) - Project Overview Contracting Parties and Structure
Trolly Project Energy Storage Services Agreement ESSA) Key Terms 2 1
9/25/2025
SILICON
VALLEY
POWER.
CITY OF SANTA CLARA
Resource Adequacy Capacity Forecast (2026-2035) + Trolley BESS Project 180C
1600
1400
1200
Capacıty (MW) |
600
4C0
Total RA Under Contric: a Trolley BESS Projec: 200 MW maTiolley BESS Project 180 MW) -Peak - 20:5 PRM —Реак • 15% PRM 3 SILICON
VALLEY
POWER
CITY OF SANTA CLARA
Uses of a Battery Energy Storage System
• Ability to use cheaper energy to charge battery and discharge batteries during higher priced hours
• Enhance hourly emissions profile
• Excess Resource Adequacy capacity reduces SVP's risk of not having enough Resource Adequacy capacity when:
• Generating resources are taken offline due to unplanned outage • CAISO changes the Resource Adequacy accounting rules or reduces the qualifying capacity of existing generating resources
• Projects slated to come online but are delayed or cancelled • Excess Resource Adequacy capacity can be resold to other utilities and load serving entities (Current Practice)
4 2
9/25/2025
SILICON
VALLEY
POWER
CITY OF SANTA CLARA
Trolley Battery Energy Storage System (BESS)
- Project Overview
• RFP issued: Feb. 15, 2024 by Northern California
Power Agency (NCPA)
+ San Bernarding
• Developer: Aypa Power Development LLC colton
Redianda
• Capacity: Total 400 MW Project
• SVP portion 280 MW Riverside
• Products: Discharging Energy, Storage Capacıty, Moreno Valle Capacity Attributes, Ancillary Services
• Location: San Bernadino County (CAISO-
connected)
• Expected Commercial Operation Date
(COD): June 1, 2029 ita Ana
Alrvine
5 SILICON
VALLEY
POWER
CITY Or SANTA CLARA
Contracting Parties and Structure
Participating Members
Santa Clara - 280 MW
(Aya Power Development Lo
Energy Alameda - 10 MW
Storage Lompoc - 3 MW
Services
Palo Alto - 50 MW
Agreement
(ESSA; Northern California Power Redding - 45 MW
Agency (NCPA) Shasta Lake - 5 MW
Third Port of Oakland - 4 MW
Phase Ukiah - 3 MW
Agreement
June 24, 2025: NCPA Commission approved ESSA and Third Phase Agreement Execution contingent on Participating Members' approval of Third Phase Agreement 3 9/25/2025
SILICON
VALLEY
POWER.
CITY OF SANTA CLARK
Trolley Pass Project LLC & NCPA -
Key ESSA Terms
• Term: 20-year delivery
• Fixed price without escalators
• NCPA determines when to charge/discharge battery
• Development and performance security tied to milestones and other commitments • Guaranteed efficiency rates, RA amount, and storage availability • Storage contract capacity adjusted based on storage tests • Liquidated damages for missed metrics
• Termination rights for events of default, force majeure, or adverse tax policy / tariff impacts • Seller to obtain permits, finance, build, own, operate, and maintain the facility • Contract prince increase cap - due to changes in tax laws/tariff impacts
SILICON
VALLEY
POWER
CITY OF SANTA CLARA
NCPA Third Phase Agreement
• Participants agree to purchase products produced by facility under a "take-or-pay" agreement
• Products will be delivered to participants based on their project participation percentage - 70% or 280 MW
• Participants are obligated to pay their proportionate share of project costs
Rules for governance and other administrative functions 8 4
9/25/2025
SILICON
VALLEY
POWER.
CITY OF CANTA CLARA
Recommendation
Authorize the City Manager, or designee, to complete negotiations, approve, and execute a Third Phase Agreement (Agreement) with the Northern California Power Agency for the purchase of energy storage products from the Trolley BESS Facility on the terms presented, for a total contract amount of $983,000,000 over 20 years with permissible adjustments due to supply chain events and change in tax law, funded by the Electric Utility Fund, subject to the review and approval as to form by the City Attorney; and
2. Authorize the City Manager to (a) take any and all actions as are necessary or advisable to implement and administer the Agreement; and (b) approve and execute future amendments to the Agreement for any price adjustments and other changes authorized under the Agreement, subject to the review and approval as to form by the City 9 SILICON
VALLEY
POWER
CITY OF SANTA CLARA
Thank you
10 5