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HomeMy WebLinkAboutCity of Biggs 2015-07-08(-(,& VC 15) & - C q 3 TRANSACTION AGREEMENT This Transaction Agreement ( "Agreement ") is entered into this day of n 2015 (the "Effective Date "), by and between the City of Ukiah, California ( "Ukiah" or "Seller ") and the City of Biggs, California ( "Biggs" or "Purchaser "), each referred to herein individually as a "Party" and collectively as the "Parties ", regarding the purchase and sale of Resource Contingent Bundled RECs sourced from Eligible Renewable Energy Resources. Terms capitalized but not defined herein shall have the meaning as set forth in the WSPP Agreement, the California Public Utilities Code, or the CAISO Tariff. This Agreement is entered into based on the following facts, among others: A. The State of California has enacted the Renewable Portfolio Standard Program ( "RPS "), as codified at California Public Utilities Code Section 399.11, et seg., that creates a number of mandates on local publicly owned electric utilities and retail sellers to procure renewable energy products. B. Ukiah and Biggs are members of the Northern California Power Agency ( "NCPA "), and are project participants in certain geothermal projects that are owned and operated by NCPA (the "Generating Facilities "). C. Ukiah desires to sell, and Biggs desires to purchase, energy and associated renewable attributes produced by the Generating Facilities. D. This Agreement is made to consummate a renewable energy transaction between the Parties. Therefore, the Parties agree as follows: Transaction: Product: As a project participant in the Generating Facilities, Seller has an entitlement right to the output of the Generating Facilities, which each qualify as of the Effective Date as an Eligible Renewable Energy Resource ( "ERR ") under the State of California Renewable Portfolio Standard Program ( "RPS "), as codified at California Public Utilities Code Section 399.11, et seq., and Seller desires to sell Product produced by the Generating Facilities to Purchaser pursuant to the terms and conditions set forth herein. The Parties agree to transact Resource Contingent Bundled REC (the "Product ") from the Eligible Renewable Energy Resources listed herein. The Product shall include Energy and associated RECs (otherwise known as "Portfolio Content Category 1, PCC1 "), but does not include any other non - renewable and environmental attributes (e.g., Ancillary Services or Resource Adequacy Capacity). 1 Delivery Period or Term: The Term of the transaction shall be October 1, 2015 through the earlier of: (i) December 31, 2015, or (ii) the date on which the full Contract Quantity has been delivered from Seller to Purchaser. Contract Quantity: Up to 2,000 megawatt hours of Resource Contingent Bundled RECs during the Term of the Transaction. The amount of Product delivered from Seller to Purchaser during any applicable dispatch interval during the Term of the Transaction shall be limited to the minimum of either (i) 5.6145% of the total output produced by each Generating Facility listed herein (City of Ukiah's entitlement interest in each Generating Facility), or (ii) the amount of Product that is available for Ukiah to transfer after Ukiah has met its Product delivery obligations as specified in other transactions it has made to sell Product to third parties. Contract Price: CAISO Locational Marginal Price calculated at the Delivery Point PNode per megawatt hour plus $13.00 per REC. Generating Facilities: Facility Name Resource ID Delivery Point CEC- RPS-ID WREGIS ID NCPA Geothermal Plant 1 Unit 1 NCPA 7 GPIUN1 Lakeville Sub 60908A W1254 NCPA Geothermal Plant 1 Unit 2 NCPA 7 GPIUN2 Lakeville Sub 60909A W1255 NCPA Geothermal Plant 2 Unit 3 NCPA 7 GP2UN3 Fulton Sub 60910A W1256 NCPA Geothermal Plant 2 Unit 4 NCPA 7 GP2UN4 Fulton Sub 60911A W1257 Delivery Points: The Generating Facilities' Point of Interconnection with the CAISO Controlled Grid. Scheduling: Transfer Date: Vintage: Seller shall deliver Product and schedule it on Purchaser's behalf with the CAISO in accordance with the requirements and the prevailing protocols of the CAISO Tariff. Seller shall transfer RECs from its WREGIS account, or cause RECs to be transferred from the WREGIS account maintained by NCPA, to the Purchaser's WREGIS account within 30 calendar days of their receipt. Purchasers WREGIS account ID is 814. The Parties shall take all reasonable steps that are necessary to allow the RECs to be transferred from Seller to Purchaser to be tracked in the WREGIS tracking system prior to the first delivery under this Agreement. Vintage of the RECs associated with the Product shall correspond to the month in which the electricity is produced and delivered from Seller to Purchaser during the Term of this Agreement. 2 Payment: To simplify the scheduling and settlement process based on the current CAISO market scheduling and settlement protocols, whereby CAISO will pay the Seller for the value of the Energy produced and delivered by the Generating Facility at the Delivery Point on behalf of Purchaser, the Parties agree that Seller shall schedule and deliver an amount of Energy consistent with the Contract Quantity during the Delivery Period with and to the CAISO at the Delivery Point(s), and Seller shall receive payment for the Energy from the CAISO for such delivery based on the CAISO Locational Marginal Price. Consequently, Purchaser and Seller hereby agree to net the payment for Energy Seller receives from the CAISO against the Contract Price, such that the net payment Seller shall receive from Purchaser shall be calculated as follows: Payment Due from Purchaser to Seller = Delivered and Accepted Contract Quantity * $13.00 per REC Purchaser shall remit payment to Seller in accordance with the standard NCPA All Resources Billing timelines. Environmental Attributes: The Product is a Resource Contingent Bundled REC sourced from the Generating Facilities identified herein, but does not include any other environmental attributes defined currently or in the future. The Parties agree that the Product will be sourced only from the specific Generating Facilities identified in this Agreement with no substitutions. Applicable Program: Tracking System: Furthermore, Seller represents and warrants that throughout the Term: (i) Each Generating Facility identified herein qualifies and is certified by the CEC as an Eligible Renewable Energy Resource ( "ERR ") as such term is defined in Public Utilities Code Section 399.12 or Section 399.16; and (ii) The Product delivered from Seller to Purchaser qualifies under the requirements of the Applicable Program. State of California Renewable Portfolio Standard Program ( "RPS "), as codified at California Public Utilities Code Section 399.11, et seq. RECs associated with the Product shall be tracked using WREGIS. Seller shall, upon Purchaser's reasonable request, provide documentation which may include meter data as recorded by a CAISO certified meter, sufficient to demonstrate that the Product has been conveyed and delivered, subject to the terms of the Agreement. 3 Change in Law Provisions: Reporting Obligation: Governing Law: Definitions/ Interpretations: The Product shall be Regulatory Continuing. This provision shall not apply to any Product that was delivered and accepted prior to any Change in Law if such Product complies with the Applicable Program that existed when it was delivered and accepted. Purchaser and Seller may terminate this Agreement upon 30 calendar days' written notice to the other Party if a Governmental Authority makes a determination or adopts a ruling or regulation that results in the Product failing to remain eligible or qualify under the requirements of the Applicable Program. Purchaser shall have no responsibility (whether regulatory or financial) for greenhouse gas emissions associated with the Product, and any such obligation shall be fulfilled by or at the direction of Seller at its own costs. The Transaction made pursuant to the Agreement shall be governed by and construed in accordance with the laws of the State of California. For purposes of the Agreement, the following definitions and rules of interpretations shall apply: "Applicable Law" means all legally binding constitutions, treaties, statutes, laws, ordinances, rules, regulations, orders, interpretations, permits, judgments, decrees, injunctions, writs and orders or any Governmental Authority or arbitrator that apply to RPS or any one or both of the Parties or the terms hereof. "CAISO" means the California Independent System Operator, or its functional successor. "CAISO Tariff" means the CAISO FERC Electric Tariff. "Governmental Authority" means any international, national, federal, provincial, state, municipal, county, regional or local government, administrative, judicial or regulatory entity operating under any Applicable Laws and includes any department, commission, bureau, board, administrative agency or regulatory body of any government. "Point of Interconnection" means the physical point at which a Generating Facility interconnects to the CAISO Controlled Grid. "WREGIS" means the Western Renewable Energy Generation Information System, or its successor organization. "WSPP Agreement" means the Western Systems Power Pool Agreement effective April 11, 2015, as amended from time to time. 4 IN WITNESS WHEREOF, the Parties have signed this Agreement to be effective as of the Effective Date. City of Biggs By: N ame: Tit1e:C71)) i(4.IO k ti Date: e2 rf , JZ� I G Approve as to,, o / By: Name: Gregory P. Einhorn Title: City Attorney _il/S1/ i� Date: Attest: City of Ukiah By: 57 ,/ Name: Title: C : vd a..,, Date: ■3 lS Approve as to Form Br: Da u e Name: Title: l_�e - 14� D ✓4 y Date: Attest: /401-6 IV 5 NCPA Deal Control Schedule 1. Deal Number: 1031141 (also 1031142, 1031143, 1031144) 2. Deal Type: PURCHASE /SALE RESOURCE CONTINGENT BUNDLED REC PHYSICAL 3. Contract - Product: WSPP including Service Schedule R NCPP Other 4. Participating Members: Ukiah 100% sale to Azusa 100% 5. Term: Jul - Dec 2015 (Example: Jan 99, Q2 99, Annual 99) 6. Shape: 7x24 7x24 / 7x16 / 6x16 / 6x8 / Other 7. Delivery/Transaction Point: NCPA Geothermal 8. Pricing: 9. Contract Value: Index Delivery point LMP ISO ExPost Fixed Premium / Option $13.00 /MWh REC premium PX + Other 10 GWh @ LMP + $130,000 for RECs Maximum Capacity (MW): 4 Available Energy (MWH): 10,000 MWh 10. Description: Bilateral Agreement between Ukiah and Azusa July - December, 2015. RPS Category 1 sale -- REC with bundled physical energy. First 10,000 MWh of Ukiah's share of geo generation during this period is sold to Azusa. 11. Notes: Four deal id numbers - one for each geo unit. 12. Counter Party Information: 13. Approvals Contract Implementation Billing Company Monthly NCPA ARB Company Contact Name Address Phone Fax Attention Phone Fax Member / M &MS Prepared By: Mel Grandi Signature: Date: Member / M &MS Approval: Ken Goeke Audit Review: Signature: Signature: Date: Date: Distribution: Original with Original Contract - Power Accounts Administrator Copies - Scheduling and Dispatch, Power Billing Senior Analyst Accounting & Finance DCS1 ver.03 (8/10/2015) NCPA Deal Control Schedule 1. Deal Number: 2. Deal Type: PURCHASE /SALE CATEGORY 1 RPS ENERGY PHYSICAL 3. Contract - Product WSPP NCPP Other Intra -Pool Transaction 4. Participating Members: Ukiah 100% sale to Biggs 100% 5. Term: Q4 2015 (Example: Jan 99, Q2 99, Annual 99) 6. Shape: 7x24 7x24 / 7x16 / 6x16 / 6x8 / Other 7. Delivery/Transaction Point: NCPA Geothermal 1 -4 8. Pricing: 9. Contract Value: Index Delivery Point LMP ISO ExPost Fixed Premium / Option $13.00 /MWh REC premium PX + Other 2 GWh @ LMP + 26,000 for RECs Maximum Capacity (MW): 4 Available Energy (MWH): 2,000 MWh 10. Description: Bilateral Agreement between Ukiah and Biggs Q4 2015. RPS Category 1 sale -- REC with bundled physical energy. 11. Notes: Four deal id numbers - one for each geo unit. 12. Counter Party Information: 13. Approvals Contract Implementation Billing Company Monthly NCPA ARB Company Contact Name Address Phone Fax Attention Phone Fax Member / M &MS Member / M &MS Accounting & Finance Prepared By Mel Grandi Approval: Ken Goeke Audit Review: Signature: Signature: Signature: Date: Date: Date: Distribution: Original with Original Contract - Power Accounts Administrator Copies - Scheduling and Dispatch, Power Billing Senior Analyst DCS1 ver.03 (8/10/2015)