FROM: Robert Thompson, General Manager
Originator: Riaz Moinuddin, Director of Operations & Maintenance
SUBJECT:
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SOUTHERN CALIFORNIA EDISON - AMENDMENT NO. 4 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. 4 to the Power Purchase Agreement (QFID-04) with Southern California Edison (SCE) Company and Orange County Sanitation District, 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
The 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 SCE entered into a Power Purchase Agreement (PPA) on September 9, 1991. The terms of this agreement end July 26, 2023. This agreement has had three prior amendments.
OC San has applied for a new PPA agreement, Net Energy Metering (NEM-ST), with SCE. The NEM-ST agreement is being processed by SCE. Amendment No. 4 will allow OC San to continue with the existing PPA and be compensated for resource capacity, however, OC San will not be compensated for any energy delivered to the grid. OC San does not plan to export energy in any significant way under this 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 original PPA is set to expire on July 26, 2023. On April 12, 2023, OC San applied for the new PPA. The application is currently under review and will not be in place before the expiration of the existing PPA.
PROPOSED SOLUTI...
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