HomeMy WebLinkAboutResolutions - No. 2012-78RESOLUTION NO. 2012-78
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING THE SINGLE MEMBER SERVICES
AGREEMENT BY AND BETWEEN THE CITY OF LODI
AND THE NORTHERN CALIFORNIA POWER AGENCY,
AND FURTHER AUTHORIZING THE CITY MANAGERTO
EXECUTE SAID AGREEMENT
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WHEREAS, on April 12, 201 1, the Governor of the State of California signed
California Senate Bill 2 of the First Extraordinary Session, SBX1-2, Chapter 1, Statutes
of 2011, First Extraordinary Session, (SBX1-2), known as the California Renewable
Energy Resources Act, which became effective on December 10,2011; and
WHEREAS, SBX1-2 requires that the amount of electricity generated from
eligible renewable energy resources be increased to an amount that equals at least 20%
of the total electricity sold to retail customers in California by December 31, 2013, 25%
by December 31, 2016, and 33% by December 31, 2020; and
WHEREAS, while Lodi will need to adopt a Renewable Energy Resources
Procurement Plan (RPS Procurement Plan) to meet the requirements of SBX1-2, the
California State Energy Commission (CEC) still has not published the details of the
requirements for such RPS Procurement Plans, though they were required to do so no
later than December 31, 2011; and
WHEREAS, staff anticipates bringing a RPS Procurement Plan to Council for
approval in the first quarter of fiscal year 2012/13; and
WHEREAS, SB1 X-2 requirements will require different amounts of varying types
of renewable resources in various years; these different types are called Portfolio
Content Categories (PCC); and
WHEREAS, in anticipation of the RPS procurement Plan staff has completed a
preliminary analysis; based on this analysis it is expected that no net purchases will be
required to meet SBX1-2 requirements through calendar year 2013; and
WHEREAS, analysis has also shown that Lodi has a surplus of the more
valuable PCC 1, which includes renewable resource products that are scheduled from
an eligible renewable energy resource directly into a California balancing authority;
Lodi's surplus comes mostly from our entitlements to Northern California Power Agency
(NCPA) geothermal plants; and
WHEREAS, this excess PCC 1 may be sold and replaced with a much less
expensive PCC 3 resource; PCC 3 includes unbundled renewable energy credits that do
not qualify under the criteria for other Content Categories; and this exchange of PCC
types may result in savings to Lodi of as much as $2 million this fiscal year; and
WHEREAS, NCPA is currently working to modify the Market Power Purchase
Agreement (MPP) to enable NCPA to make these types of transactions for the MPP
Participants, which includes Lodi; unfortunately it is unlikely that the MPP can be
modified in time to make the transactions that need to be completed this year; and
WHEREAS, Lodi itself has neither the time nor experience to complete these
transactions on our own in the available time frame; and
WHEREAS, NCPA has developed the Single Member Services Agreement
(SMSA) and scope of work (Advisory Services) to facilitate such independent
transactions, by assisting its members in carrying out economic and timely transactions;
and
WHEREAS, the SMSA will allow additional scopes of work to be attached to it in
the future, as needed from time to time; any additional scopes of work will require
separate approvals by both NCPA and Lodi; potential transactions that come out of this
process will still need to be approved in accordance with Lodi's existing approval
process.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve the Single Member Services Agreement by and between the City of Lodi and
the Northern California Power Agency and authorizing the City Manager to execute said
agreement with administration by the Electric Utility Director.
Dated: June 6, 2012
hereby certify that Resolution No. 2012-78 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 6, 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// -7
rD7j-HL
City Clerk
2012-78