Title
Resolution - Approval Power Purchase Agreement - I Sterzing
Other Info
Submitted By: Ingmar Sterzing
Department: Power Supply and Energy Services
Financial Impact and Cost/Benefit Considerations:
Based on the updated indicative price for the extension there will be a net positive benefit to PEC Cost of Power over the term of the agreement.
Discussion:
In May of 2016 PEC executed a one (1) year power purchase agreement for up to 50 MW of wind power resulting in a net positive benefit to PEC Cost of Power expense. PEC now wishes to extend the power purchase agreement for an additional year from July 1st, 2017 to June 30th, 2018 and anticipates to achieve the same net positive benefit to PEC Cost of Power expenses. The Cooperative's amended and restated wholesale power agreement with the Lower Colorado River Authority includes intermittent progressive power generation provisions. Specific terms and conditions, including price, are provided in PEC Executive Session documentation.
Body
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF PEDERNALES ELECTRIC COOPERATIVE, INC. that the Cooperative authorize the Chief Executive Officer, or his designee, to negotiate and enter into a power purchase agreement to acquire electric capacity, energy and other related products from renewable wind generation for up to 50 MW for a term not to exceed one (1) year to become effective as early as July 1, 2017; and
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Chief Executive Officer, or his designee, is hereby authorized and directed to do any and all such other things, and take such other actions, as the Chief Executive Officer, or his designee, deems necessary or desirable to effectuate the purposes of this resolution.