HomeMy WebLinkAboutCC Reso 2021-50 - SFWPA Third Phase Agreement
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RESOLUTION NO. 2021-50
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE THIRD
PHASE AGREEMENT FOR POWER PURCHASE AGREEMENT WITH SOUTH FEATHER WATER
AND POWER AGENCY
WHEREAS, the City of Ukiah Electric has adopted policies that are designed to increase the amount
of energy that they provide to their retail customers from eligible renewable energy resources and
carbon free resources to comply with the California Renewable Energy Resources Act and other
applicable requirements; and
WHEREAS, South Feather Power and Water Agency (SFWPA) owns and operates four existing
hydroelectric generating plants operating under FERC licenses: the Forbestown Powerhouse (37.5
MW), the Kelly Ridge Powerhouse (11.0 MW), the Sly Creek Powerhouse (13.0 MW) and the
Woodleaf Powerhouse (60.0 MW) (the Facility or as otherwise referred to as the South Feather Power
Project) that qualify as either eligible renewable energy resources or carbon free resources; and
WHEREAS, SFWPA has agreed to sell to NCPA, and NCPA has agreed to purchase from SFWPA,
acting on behalf of the City of Ukiah and other participating NCPA members, certain energy, capacity
rights and associated environmental attributes supplied from the South Feather Power Project
pursuant to the terms and conditions set forth in the Power Purchase Agreement (PPA) between
South Feather Water and Power Agency and Northern California Power Agency; and
WHEREAS, the term of the PPA includes the Initial Delivery Term that will begin on the Initial Delivery
Date, and will continue uninterrupted through December 31, 2031, and at the end of the Initial Delivery
Term, if SFWPA does not elect to terminate the PPA, the term of the PPA will automatically extend
for an additional 10-year period (the Extended Delivery Term); and
WHEREAS, during the term of the PPA, NCPA will schedule and dispatch the South Feather Power
Project, and SFWPA will own, operate and maintain the South Feather Power Project; and
WHERAS, to enable NCPA to enter into the PPA on behalf of the City of Ukiah and the other
participating members (individual referred to as a “Participant”, and collectively referred to as the
“Participants”), pursuant to the terms and conditions of the Amended and Restated Facilities
Agreement, the Third Phase Agreement provides all means necessary for NCPA to fulfill obligations
incurred on behalf of NCPA and the Participants pursuant to the PPA, and to enable and obligate the
Participants to take delivery of and pay for such electric capacity and energy and to pay NCPA for all
costs it incurs for undertaking the foregoing activities.; and
WHEREAS, the Third Phase Agreement specifies the rights and obligations of NCPA and the
Participants regarding governance and administration of the PPA, and obligates each Participant to
pay for its Project Participation Percentage share of all Project Costs, Administrative Services Costs,
scheduling coordination costs, and all other costs related to the PPA; and
WHEREAS, upon full execution of the Third Phase Agreement, NCPA will be authorized to enter into
the PPA on behalf of the Participants, and such PPA shall be deemed a NCPA Project by the
Commission pursuant to the Amended and Restated Facilities Agreement; and
WHEREAS, SFWPA has agreed to sell to NCPA, and NCPA has agreed to purchase from SFWPA,
certain energy, capacity rights and associated environmental attributes produced by the South
Feather Power Project for the purchase price set forth in Appendix A of the PPA; and
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WHEREAS, NCPA proposes to enter into the PPA to acquire certain energy, capacity rights and
environmental attributes produced by the South Feather Power Project on behalf of the
Participants. This activity would not result in a physical change to the existing facilities and therefore,
would not result in a direct or reasonably foreseeable indirect change to the physical
environment. Thus, this activity is not a “project” for purposes of Section 21065 of the California
Environmental Quality Act. No environmental review is necessary; and
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Ukiah, that the Mayor is
authorized, on behalf of the City of Ukiah, to enter into the Third Phase Agreement for Power
Purchase Agreement with South Feather Water and Power Agency (Third Phase Agreement),
including any non-substantial modifications to the Third Phase Agreement.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the 6th day
of October, 2021 by the following roll call vote:
AYES: Councilmembers Duenas, Brown, and Mayor Orozco
NOES: None
ABSENT: Councilmembers Crane and Rodin
ABSTAIN: None
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Juan V. Orozco, Mayor
ATTEST:
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Kristine Lawler, City Clerk