TITLE
Recommendation to authorize City Manager, or designee, to execute a Participating Generator Agreement with California Independent System Operator (CAISO);
Authorize City Manager, or designee, to execute a Large Generator Interconnection Agreement with Southern California Edison (SCE) and CAISO;
Authorize City Manager, or designee, to execute a Separate Interconnection Agreement with SCE;
Authorize City Manager, or designee, to execute a Meter Servicing Agreement with CAISO; and
Authorize City Manager, or designee, to execute a Scheduling Coordinator Agreement with a certified scheduling coordinator. (Citywide)
DISCUSSION
On November 6, 1984, the City of Long Beach (City) and Southern California Edison (SCE) entered into an agreement for the purchase of power generated at the Southeast Resource Recovery Facility (SERRF). The term of this Power Purchase Agreement is for 30 years from start of commercial operation of SERRF, which took place in December 1988. The agreement is scheduled to end in December 2018.
During the past 30 years, each party has fulfilled its commitments under the SERRF agreement. SERRF has generated 6.5 billion KWH of electricity while processing 15 million tons of municipal solid waste, which would have gone to landfills. The electricity generated is the equivalent amount of electricity needed to power 35,000 households for a period of 30 years.
The California energy grid has undergone significant changes since the City and SCE entered into this SCE agreement almost 34 years ago. With electrical deregulation, the development of renewable energy and the shift from thermal generation produced by oil combustion to natural gas, the opportunities for the sale of co-generated power have shifted. Our contractor, Covanta Energy, and City staff have studied various sale options over the past five years. The new accepted industry standard for independent power producers is to convert over to selling into the California Independent ...
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