FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
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SOUTHERN CALIFORNIA EDISON - REPLACEMENT OF THE POWER PURCHASE AGREEMENT AT PLANT NO. 2
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GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
Approve the Net Energy Metering Interconnection Agreement (NST-497000) and Affidavit with Southern California Edison (SCE) Company and Orange County Sanitation District (OC San) to allow service under the Net Energy Metering (NEM-ST) tariff.
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BACKGROUND
OC San operates five Central Generation engines and a steam turbine at Plant No. 2. The engines and steam turbine normally generate 100% of the power demand at Plant No. 2 and a nominal amount that is exported.
OC San and SCE entered into a Power Purchase Agreement (PPA) on September 9, 1991. This agreement has had four amendments, most recently in July 2023 while SCE was processing OC San's application for service under the NEM-ST tariff. That application has been approved.
RELEVANT STANDARDS
* Ensure the public's money is wisely spent
* Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard
PROBLEM
The original PPA extension is set to expire on November 30, 2024. The NEM-ST tariff agreement will incorporate a new PPA and allow OC San to continue exporting power to SCE.
PROPOSED SOLUTION
Approve the Net Energy Metering Interconnection Agreement and Affidavit to allow power export with a new PPA through the NEM-ST tariff.
TIMING CONCERNS
Not approving the NEM-ST arrangement would leave OC San without a PPA after November 2024.
RAMIFICATIONS OF NOT TAKING ACTION
Without this agreement, OC San will not be able to export power at Plant No. 2.
PRIOR COMMITTEE/BOARD ACTIONS
July 2023 - Approved and Authorized the Board Chairman to execute Amendment No. 4 to the Power Purchase Agreement (QFID-04) with Southern Cal...
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