FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
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SALE OF EXCESS POWER
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Authorize the General Manager to enter into an agreement to sell power, in a form approved by General Counsel, with a qualified power purchaser for excess power produced at Plant No. 2.
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BACKGROUND
Orange County Sanitation District (OC San) operates five Central Generation (CenGen) 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 Southern California Edison (SCE) entered into a Power Purchase Agreement on September 9, 1991, where SCE pays OC San for the excess power generated. Recently, OC San applied for the Wholesale Distribution Access Tariff (WDAT) with SCE which will allow OC San to sell exported power to an eligible purchaser. A condition of the WDAT application is to have a Generator Interconnection Agreement in place with SCE, which was approved by the Board of Directors in September 2025 and is required to be executed by October 31, 2025. The execution of the Generator Interconnection Agreement automatically terminates the current Power Purchase Agreement that OC San has in place with SCE, causing the need to find a new eligible power purchaser.
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 current Power Purchase Agreement with SCE will terminate when the Generator Interconnection Agreement is executed, meaning that SCE will no longer pay for the excess power generated at Plant No. 2.
PROPOSED SOLUTION
Delegate authority to the General Manager to enter into an agreement with a qualified power purchaser to s...
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