HomeMy WebLinkAbout2021-03-25; Clean Energy Alliance JPA; ; Approval of Agreement with San Diego Gas & Electric for the Procurement of Long-Term Renewable Power Supply41110.-
CLEAN ENERGY ALLIANCE
Staff Report
DATE: March 25, 2021
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Interim Chief Executive Officer
ITEM 8: Approval of Agreement with San Diego Gas & Electric for the Procurement of Long-Term
Renewable Power Supply
RECOMMENDATION
Authorize the Interim Chief Executive Officer to execute a power purchase agreement with San Diego
Gas & Electric for the procurement of Long-Term Renewable Power Supply, pursuant to Energy Risk
Management Policy and subject to Special Transactions Counsel approval.
BACKGROUND AND DISCUSSION
As a load serving entity, Clean Energy Alliance (CEA) has a requirement to procure a minimum of 65% of
its state mandated renewable energy through long-term contracts of ten years or more. In July 2020
CEA issued a Request for Offers for Long-Term Renewablelnergy and has been negotiating with short-
listed developers for final agreements. In addition to that that effort, CEA has been negotiating with San
Diego Gas & Electric (SDG&E) for long-term renewable energy. Upon approval of the agreement by the
CEA Board, SDG&E will file an Advice Letter with the California Public Utilities Commission for approval
of the transaction.
The agreements under negotiation through CEA's solicitation and the agreement with SDG&E will not
fulfill all of the long-term renewable energy that CEA requires, and CEA will need to issue, and
participate it, other long-term renewable solicitations.
FISCAL IMPACT
The costs of the SDG&E agreement have been factored into CEA's financial pro forma, and CEA's rates
have been established to generate sufficient revenue to fund the costs of the agreement.
ATTACHMENTS
None