FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
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SOUTHERN CALIFORNIA EDISON - AMENDMENT NO. 5 TO THE POWER PURCHASE AGREEMENT AT PLANT NO. 2
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Approve and authorize the Board Chairman to execute Amendment No. 5 to the Power Purchase Agreement (QFID-05) with Southern California Edison (SCE) Company and Orange County Sanitation District (OC San), to allow for the extension of the term and to adjust the price for all energy delivered to SCE during the extension period.
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BACKGROUND
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 SCE entered into a Power Purchase Agreement (PPA) on September 9, 1991. The terms of this agreement end November 30, 2024. This agreement has had four prior amendments.
OC San is applying for a new PPA under the Wholesale Distribution Access Tariff (WDAT) with SCE. The WDAT agreement is being processed by SCE. Amendment No. 5 will allow OC San to continue with the existing PPA and continue to be compensated for resource capacity. OC San does not plan to export significant amounts of energy under the amendment and plans to operate the engines with near zero exports.
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 PPA is set to expire on November 30, 2024. The application for a replacement WDAT PPA is currently under review and will not be in place before the expiration of the existing PPA.
PROPOSED SOLUTION
Approve Amendment No. 5 of the current PPA which will provide continued service through December 31,...
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