HomeMy WebLinkAboutCC Reso 2025-42 - Approving Agreement with Trolley Pass Project, LLCRESOLUTION NO. 2025-43
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE THIRD
PHASE AGREEMENT FOR ENERGY STORAGE SERVICES AGREEMENT WITH TROLLEY
PASS PROJECT, LLC
WHEREAS, The City of Ukiah Electric Utility has adopted policies that are designed to increase the
amount of energy that is provided to retail customers from eligible renewable and carbon free energy
resources, increase renewable integration, and improve grid reliability; and
WHEREAS, Increased renewable generation creates variability that requires grid balancing solutions;
and
WHEREAS, Battery energy storage solutions provide opportunities for arbitrage, load shifting, peak
shaving, and emergency backup capabilities; and
WHEREAS, Trolley Pass Project, LLC has agreed to sell discharging energy, storage capacity,
capacity attributes and ancillary services (Products) from a 300MW battery energy storage facility,
located in San Bernadino County, California to Northern California Power Agency (NCPA), on behalf
of the City of Ukiah and other participating NCPA members; and
WHEREAS, Trolley Pass Project, LLC has agreed to sell Products supplied from the Trolley Pass
Project at an average yearly price of $436,464; and
WHEREAS, Terms and conditions for the transaction are set forth in the Energy Storage Services
Agreement (ESSA) between Trolley Pass Project, LLC and Northern California Power Agency; and
WHEREAS, The ESSA includes an expected commercial operation date of June 1, 2029, with a term
of 20 years; and
WHEREAS, During the term of the ESSA, NCPA will act as Scheduling Coordinator for the Project,
and Trolley Pass Project will own, operate, and maintain the project; and
WHEREAS, To enable NCPA to enter into the ESSA on behalf of the City and other participating
members (individually 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 ESSA, 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 incurred 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 ESSA, 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 ESSA; and
WHEREAS, Upon full execution of the Third Phase Agreement, NCPA will be authorized to enter into
the ESSA on behalf of the Participants, and such ESSA shall be deemed an NCPA Project by the
Commission pursuant to the Amended and Restated Facilities Agreement; and
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WHEREAS, pursuant to the terms and conditions of the Third Phase Agreement, the City of Ukiah
acknowledges and agrees to be bound by the terms and conditions of the Third Phase Agreement,
and that the Third Phase Agreement is written as a "take or pay" agreement, and any Products
delivered to NCPA under the ESSA shall be delivered to the City of Ukiah in proportion to Ukiah's
project participation percentage, 1 %, and Ukiah shall take and pay for it's respective percentage of
Products; and
WHEREAS, NCPA's obligation to purchase Products supplied from the Trolley Pass Project is
conditioned on completing any environmental review required by California Environmental Quality
Act (CEQA); and
WHEREAS, The NCPA Commission adopted Resolution 25-80 on June 26, 2025, approving the
Trolley Pass Project, LLC ESSA and Third Phase Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, that the City
Manager is authorized, on behalf of the City of Ukiah, to enter into the Third Phase Agreement for
Energy Storage Solutions Agreement with Northern California Power Agency, including any
nonsubstantive modifications to the Agreement as approved by NCPA's counsel.
PASSED AND ADOPTED this 2011 day of August, 2025, by the following vote on roll call vote:
AYES: Councilmembers Rodin, Criss,
NOES: None.
ABSTAIN: None.
ABSENT: None.
ATTEST:
6APt)�a
Kristine Lawler, City Clerk
Orozco, Sher, and Mayor Crane.
bouglasVF. Crane, Mayor
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