HomeMy WebLinkAbout2022-05-26; Clean Energy Alliance JPA; ; Consider Authorizing the Board Chair and Chief Executive Officer to Execute Agreement with Pattern SC Holding for Resource Adequacy, for a Fifteen (15) Year Term Beginni~
CLEAN ENERGY ALLIANCE
DATE:
TO:
FROM:
Staff Report
May 26, 2022
Clean Energy Alliance Board of Directors
Barbara Boswell, Chief Executive Officer
ITEM 11: Consider Authorizing the Board Chair and Chief Executive Officer to Execute Agreement
with Pattern SC Holding for Resource Adequacy, for a Fifteen (15) Year Term Beginning
June 2023 for an amount not to exceed $6.5MM in Compliance with California Public
Utilities Commission Mid-Term Reliability Mandate
RECOMMENDATION
Authorize the Board Chair and Chief Executive Officer to Execute Agreement with Pattern SC Holding for
Resource Adequacy, for a Fifteen (15) Year Term Beginning June 2023 for an amount not to exceed
$6.5MM in Compliance with California Public Utilities Commission Mid-Term Reliability Mandate,
subject to Special Transactions Attorney approval.
BACKGROUND AND DISCUSSION
California Public Utilities Commission (CPUC) Decision 21-06-035 required all load serving entities,
including community choice aggregators, to procure addition resources for replacement of, among
other requirements, replacement of Diablo Canyon. The CPUC Decision requires:
• Project on line by 8/1/2023, 6/1/2024 or 6/1/2025, with a preference for an earlier COD;
• Available for a term of at least 10 years;
• Must be non-fossil fueled.
Pursuant to the Decision, Clean Energy Alliance joined with Desert Community Energy and California
Choice Energy Authority and issued a joint solicitation in December 2021. The solicitation garnered
responses representing over 80 projects. The responses were further refined based on price, location,
and eligibility (short-list). Due to the competition that was created by the requirement of all LSEs, many
of the short-listed projects either withdrew from the procurement process or changed the terms of their
proposal.
One of the short-listed projects is a wind project proposed by Pattern SC Holding. In order to secure the
project, the agreement needs to be executed by June 1, 2022. While the final agreement is still being
finalized, the term and price are known, 15-years at a not to exceed amount $6.5MM.
In order to meet the time line, staff recommends the Board authorize the Board Chair and Chief
Executive Officer to execute the final agreement, subject to the Special Transactions Attorney approval.
FISCAL IMPACT
May 26, 2022
Mid-Term Reliability
Page 2 of2
The costs related to the procurement have been factored into the financial pro-forma.
ATTACHMENTS
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