HomeMy WebLinkAbout2015-04-21; City Council; Resolution 2015-101EXHIBIT 1
1 RESOLUTION NO. 2015-101
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
3 CALIFORNIA, IN SUPPORT OF THE ALTERNATE PROPOSED
DECISION OF CALIFORNIA PUBLIC UTILITIES COMMISSION
4 PRESIDENT PICKER CONDITIONALLY APPROVING SDG&E'S
APPLICATION FOR AUTHORITY TO ENTER INTO A PURCHASE
5 POWER TOLLING AGREEMENT WITH CARLSBAD ENERGY CENTER
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WHEREAS, the Encina Power Plant (EPS) has been located on the coastline of the City of
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^ Carlsbad since 1954 and is an aging power plant that is inefficient, operates with outdated air
IQ pollution control systems, uses ocean water for cooling and other purposes, and has a
11 significant adverse visual impact on the coast; and
12 WHEREAS, on January 14, 2014 the City Council of the City of Carlsbad, California
adopted City Council Resolution No. 2014-010, approving an agreement (Settlement
Agreement) between and among the City of Carlsbad (City) and the Carlsbad Municipal Water
District (CMWD), Cabrillo Power I LLC and Carlsbad Energy Center LLC (collectively, NRG) and
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17 San Diego Gas & Electric (SDG&E), addressing items including:
1. The need for additional generating capacity in the San Diego region following the
premature closure of the San Onofre Nuclear Generating Station (SONGS);
2. The permanent shut down of the Encina Power Station as soon as reasonably
possible;
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23 3. The demolition and removal of EPS by a time certain and the subsequent
24 remediation and redevelopment of the EPS site;
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4. The redesigning of the Carlsbad Energy Center Project (CECP) to achieve a smaller
environmental footprint, lower profile, and lower stack heights;
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use of ocean water for power plant cooling or other industrial uses;
6. The relocation of the SDG&E North Coast Service Center off of the coastline in a
1 5. The provision of recycled water for the redesigned CECP by the CMWD to avoid the
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^ manner that is cost-neutral to SDG&E and its ratepayers; and
6 WHEREAS, the approval of a Purchase Power Tolling Agreement for the Carisbad Energy
7 Center Project, based on analysis and statements by the California Independent System
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Operator, will provide significant electricity system benefits to the City of Carlsbad and the San
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Diego region including improved electrical reliability in the region following retirement of
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SONGS and planned closure of the EPS in conformance with the State Water Resources Control
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12 Board's once-through-cooling regulations; and
13 WHEREAS, the approval of a Purchase Power Tolling Agreement for the Carlsbad Energy
14 Center Project will provide significant benefits to the City of Carlsbad including:
1. Removal of the visual blight on the coastline associated with the EPS, abandoned oil
tanks, and related industrial facilities located on the EPS site;
2. Elimination of the biological impacts on the Agua Hedionda Lagoon and ocean
19 associated with the use of ocean water for power plant cooling and other uses for
20 the EPS;
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24 4. Redevelopment of the entire EPS site between the coast and the rail road tracks
25 allowing greater coastal access, open space, and coastal oriented land uses;
3. Eliminarion of air and greenhouse gas emissions and noise from the old and
inefficient EPS;
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plant that is more environmentally friendly, has a lower profile, and a cap on power
generation and hours of operation; and
WHEREAS, on March 6, 2015, Administrative Law Judge Yacknin issued a proposed
1 5. Redesign of the CECP approved by the California Energy Commission in 2012 to a
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g decision denying without prejudice SDG&E's application for authority to enter into a Purchase
7 Power Tolling Agreement with Carlsbad Energy Center, LLC (NRG) which the City of Carlsbad
^ through a letter from Mayor Pro Tem Blackburn on March 26, 2015 requested be rejected; and
WHEREAS, on April 6, 2015, Commission President Picker issued an alternate proposed
decision conditionally approving SDG&E's applicarion for authority to enter into a Purchase
Power Tolling Agreement with Carisbad Energy Center, LLC (NRG); and
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13 WHEREAS, said alternate proposed decision conditionally approves SDG&E's application
14 subject to two conditions:
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19 2. That all of the 100 MWs in residual procurement authority resulting from the
20 amendment of the application must consist of preferred resources or energy storage.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carisbad, California
as follows:
1. That the proposed project contract capacity is reduced from 600 MWs to 500 MWs
while otherwise subject to the same per unit price, and other terms and conditions;
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That the above recitations are true and correct.
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25 2. That the City of Carisbad supports the alternate proposed decision of California
26 Public Utilities Commissioner Picker conditionally approving SDG&E's application
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for authority to enter into a Purchase Power Tolling Agreement with Carlsbad
Energy Center LLC (NRG) which will allow permanent retirement, demolition, and
removal of the EPS as soon as possible and the construction and operation of the
CECP as proposed in the application before the California Energy Commission.
3. That the City Manager is hereby authorized to transmit a copy of the passed,
approved and adopted Resolution in Support to the California Public Utiliries
Commission.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of theCity Council of the City
of Carlsbad on the 21=* day of April 2015, by the following vote to wit:
AYES:
NOES:
Council Members Blackburn, Schumacher, Wood, Packard.
None.
ABSENT: Council Member Hall.
KEIlVf BLACKBURN, Mayor Pro Tem
ATTEST:
BARBARA ENGLESON/City Clerk
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