Title
RESOLUTION NO. 5152 NEW SERIES
A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING THE ENTERING INTO OF A POWER SALES CONTRACT WITH ARIZONA POWER AUTHORITY.
Staff Contact: Craig Johnson, P.E., Director, Water Services
end
Purpose and Recommended Action
Recommendation
This is a request for City Council to waive reading beyond the title and adopt a resolution authorizing the City Manager to enter into a contract with the Arizona Power Authority (APA) to purchase power generated at Hoover Dam. The contract term covers the period from October 1, 2017 through September 30, 2067 (50 years)body
Background
The City of Glendale received an allocation of Hoover power from the Western Area Power Authority (Western). Glendale's allocation of Schedule D1 power from Western is 426 kW of contingent capacity, with 650,591 kWh of firm summer energy and 279,359 kWh of firm winter energy for a total of 930,050 kWh.
Analysis
Hoover power allottees in Arizona receive and pay for their energy allocation through contracts with the APA. The APA in turn contracts with Western on behalf of the Arizona customers as a whole. As a condition of contracting with the APA, customers must make arrangements for the scheduling, transmission, and delivery of their allocation from the Mead Substation, near Hoover Dam. APS and/or SRP can provide these services to the City through programs in which they receive the Hoover power and provide a bill credit for the value of the energy received.
Glendale must execute two contracts to utilize the allocation. The first contract is a Power Sales Contract with the APA which will allow Glendale to receive its Hoover power allocation. The second contract is for the bill crediting agreement between Glendale and one of its host electricity providers, Salt River Project (SRP).
This Council action is limited to the Power Sales Contract between Glendale and the APA. A separate Council action is requir...
Click here for full text