HomeMy WebLinkAboutResolutions - No. 2012-123RESOLUTION NO. 2012-123
A RESOLUTION OF THE LODI CITY
COUNCIL APPROVING THE AMENDED AND
RESTATED NORTHERN CALIFORNIA
POWER AGENCY MARKET PURCHASE
PROGRAM AGREEMEMT
WHEREAS, the Market Purchase Program (MPP) Agreement was made
effective August 1, 2007, by and among the Northern California Power Agency (NCPA),
the City of Lodi and other NCPA members, to enable NCPA, on behalf of the MPP
participants,to engage in contract transactions to purchase power; and
WHEREAS, since its inception the MPP has operated successfully for Lodi by
facilitating execution of these contracts for the benefit of its electric utility customers; and
WHEREAS, due to changes in the wholesale electric market, including new
regulatory obligations, Lodi and the other MPP participants have requested NCPA to
revise the MPP Agreement to enable NCPA to transact new products that are currently
not available under the MPP Agreement; and
WHEREAS, to satisfy this request, NCPA, working in coordination with the MPP
participants, has developed the Amended and Restated Market Purchase Program
Agreement to provide for these new products; and
WHEREAS, the Amended MPP Agreement will enable NCPA to engage in
transactions, on behalf of the Lodi and others, to purchase and sell energy, resource
adequacy capacity, Renewable Energy Certificates (RECs), Green House Gas (GHG)
compliance instruments and physical option products; and
WHEREAS, through these MPP contract transactions, authorized under the
Amended MPP Agreement, Lodi will assure greater rate and budget stability by:
(i) reducing the proportion of energy the City needs to acquire in a potentially volatile
spot market; (ii) transacting in bundled and unbundled RECs to manage the Lodi's
renewable energy portfolio as mandated by the State of California; (iii) satisfying
applicable resource adequacy requirements per California Independent System
Operator mandate in a more efficient manner; and (iv) satisfying applicable GHG
emission compliance obligations per State of California mandate; and
WHEREAS, the Amended MPP Agreement specifies the terms and conditions
under which NCPA will perform such services, including, but not limited to, NCPA's and
the City of Lodi's obligations regarding transaction process, transaction authorization,
and financial requirements; and
WHEREAS, the City of Lodi, as a signatory to the Amended MPP Agreement, will
be responsible to pay to NCPA each month the sum of the following: (i) fixed MPP costs
of $900; (ii) one -twelfth of the City's allocated share of variable MPP costs calculated in
accordance with the agreement; (iii) transaction specific costs for the City's contract
transactions; and (iv) commodity costs for the City's contract transactions; and
WHEREAS, in addition to the aforementioned monthly payment obligations, the
City of Lodi is obligated to fund: (i) the City of Lodi's share of any and all required
security deposits calculated in accordance with the Amended MPP Agreement; and
(ii) the City of Lodi's share of working capital requirements for the Market Purchase
Program maintained at NCPA as set forth in the NCPA Annual Budget.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby
authorize approval of the Northern California Power Agency Amended and Restated
Market Purchase Program Agreement and authorizes execution by the City Manager
with administration by the Electric Utility Director.
Dated: August 1, 2012
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hereby certify that Resolution No. 2012-123 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held August 1, 2012, by the following
vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Katzakian, Nakanishi,
and Mayor Mounce
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
OHL
City Clerk
2012-123