Resolution 14720CITY OF ALAMEDA RESOLUTION NO. 14720
RATIFYING THE PUBLIC UTILITY BOARD'S APPROVAL OF THE
AMENDED AND RESTATED MARKET PURCHASE PROGRAM AGREEMENT
WITH THE NORTHERN CALIFORNIA POWER AGENCY
WHEREAS, Alameda Municipal Power (AMP) has the need to
purchase and sell energy, resource adequacy capacity, renewable energy
certificates (RECs) and green- house gas compliance instruments to meet its
future electric power requirements and comply with state regulations; and
WHEREAS, AMP is a member of the Northern California Power
Agency (NCPA); and
WHEREAS, AMP became a participant in the Market Purchase
Program Agreement to enable NCPA, on behalf of AMP, to engage in
transactions to purchase energy for the benefit of AMP's customers; and
WHEREAS, the Board via Resolution 4886 on November 21, 2011
and the City Council via Resolution 14639 on December 20, 2011 approved
AMP's participation in the MPP; and
WHEREAS, due to the changing landscape of the wholesale
electric market, including new regulatory obligations, AMP has requested NCPA
to revise the MPP Agreement to enable NCPA to transact new products that are
currently not available under the MPP Agreement; and
WHEREAS, to satisfy this request, NCPA, working in coordination
with AMP, has developed the Amended and Restated Market Purchase Program
Agreement to enable certain new approved products requested by AMP; and
WHEREAS, the Amended MPP Agreement will enable NCPA to
engage in transactions, on behalf of AMP, to purchase and sell approved
products, which include energy, resource adequacy capacity, RECs, GHG
compliance instruments and physical option products; and
WHEREAS,' AMP, through transactions authorized under the
Amended MPP Agreement, seeks to assure greater rate and budget stability by
(i) reducing the proportion of energy AMP needs to acquire in a potentially
volatile spot market; (ii) transacting in bundled and unbundled RECs to manage
AMP renewable energy portfolio; (iii) satisfying applicable resource adequacy
requirements more efficiently, and (iv) satisfying applicable GHG emission
compliance obligations more efficiently; and
WHEREAS, the Amended MPP Agreement specifies the terms and
conditions under which NCPA will perform such services, including, but not
limited to NCPA's and AMP's obligations regarding the transaction process,
transaction authorization and financial requirements; and
WHEREAS, AMP, as a signatory to the Amended MPP
Agreement, will be responsible to pay to NCPA each month the sum of the
following as defined in the Amended MPP Agreement: (i) the Fixed MPP Costs of
$900, (ii) one-twelfth of AMP's allocated share of Variable MPP Costs, (iii)
transaction specific costs for AMF's transactions, and (iv) commodity costs for
AMP's transactions; and
WHEREAS, in addition to the aforementioned monthly payment
obligations, AMP is obligated to fund: (i) AMP's share of any and all required
security deposits calculated in accordance with the Amended MPP Agreement,
and (ii) AMP's share of working capital requirements for the Market Purchase
Program maintained at NCPA as set forth in the NCPA Annual Budget; and
WHEREAS, the Public Utilities Board has reviewed and approved
the agreement at its June 25, 2012 meeting and recommends that the City
Council ratify its action as required by City Charter Section 12-2(A),
NOW, THEREFORE, BE IT RESOLVED by the Public Utilities
Board of the City of Alameda, and subject to ratification of its action by the City
Council, as follows:
1. The Amended MPP Agreement with NCPA is hereby approved,
and the General Manager of Alameda Municipal Power is hereby
authorized to execute it on behalf of Alameda Municipal Power.
2. The General Manager or designee is hereby designated as the
Designated Representative for the Amended MPP Agreement
pursuant to the Amended MPP Agreement. Such Designated
Representative is hereby authorized to execute Participant
Confirmations for Approved Products provided that such Participant
Confirmations are entered into in conformance with the Amended
MPP Agreement. The obligations entered into by such officers on
behalf of Alameda Municipal Power shall be valid and binding, and
the Board agrees to approve the payment of such obligations in
accordance with the Amended MPP Agreement as fully and as if
each such Participant Confirmation and transaction were directly
presented to and individually approved by it.
BE IT FURTHER RESOLVED that the General Manager of
Alameda Muncipal Power is authorized to execute the subject agreement without
material change.
I, the undersigned, hereby certify that the foregoing Resolution was duly
and regularly adopted and passed by the Council of the City of Alameda in a
regular meeting assembled on the 17t day of July, 2012, by the following vote to
wit:
AYES: Councilmembers Bonta, deHaan, Johnson, Tam and
Mayor Gilmore — 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the
seal of said City this 18th day of July, 2012.
Lara Weisiger, Cit erk
City of Alameda