HomeMy WebLinkAbout2022-06-30; Clean Energy Alliance JPA; ; Consider Authorization of Execution of Agreement with Resi Station, LLC for Resource Adequacy~
CLEAN ENERGY ALLIANCE
DATE:
TO:
FROM:
ITEM9:
Staff Report
June 30, 2022
Clean Energy Alliance Board of Directors
Barbara Boswell, Chief Executive Officer
Consider Authorization of Execution of Agreement with Resi Station, LLC for Resource
Adequacy
RECOMMENDATION
Authorize the Boa.rd Chair and Chief Executive Officer to Execute an Agreement with Resi Station, LLC for
Resource Adequacy, for a Ten (10) Year Term for deliveries beginning January 2023, for an amount not
to exceed $2.0MM 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 (LSE),
including community choice aggregators, to procure addition resources for replacement of, among
other requirements, replacement of Diablo Ca nyon. 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 t erm 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 in issuing a j oint 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 project proposed by Resi Station, LLC. The project meets t he
procurement requirements as established by the CPUC. The terms of the proposed agreement are for a
period of ten years at a not to exceed amount of $2.0MM.
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
June 30, 2022
Mid-Term Reliability
Page 2 of2
The costs related to the procurement have been factored into the financial pro-forma.
ATTACHMENTS
None
Item g: Agreement with Resi Station,
LLC for Resource Adequacy
• Recommendation:
• Authorize Board Chair and Ch ief Executive Officer to Execute
Agreement with Resi Station, LLC for Resource Adequacy for a
Ten-Year period with deliveries beginning January 2023, for an
amount not to exceed $2.oMM , in compliance with California Public
Utilities Commission M id -Term Reliability Procurement Mandate.
CLEAN
ENERGY
ALLIANCE
6/30/22 22
Item g: Agreement with Resi Station,
LLC for Resource Adequacy
• Background:
• CPUC Decision 21-06-035
• Procurement of additional resources for replacement of Diablo Canyon and
other requirements
6/30/22
• Project online by 8/1/2023, 6/1/2024 or 6/1/2025 with a preference for
earlier date
• Available for minimum 10 years
• Non-fossil fueled
CLEAN
ENERGY
ALLIANCE
23
Item g: Agreement with Resi Station,
LLC for Resource Adequacy
• December 2021 Solicitation
• Joint with Desert Community Energy and Californ ia Choice Energy
Authority
• Responses representing 80 projects
• Short-list based on pri ce, location, and CPUC compliance
• Resi Station meets procurement requirements established
by CPUC
CLEAN
ENERGY
ALLIANCE
6/30/22 24