TITLE
The Mayor and City Council shall discuss and possibly take action to enter into an agreement between the Arizona Power Authority and the City of Maricopa for the purchase and sale of Hoover Capacity and Hoover Energy up to 185 kW (capacity) and 400,000 kWh (energy). Discussion and Action.
AGENDA ITEM DESCRIPTION
In early 2015, the Arizona Power Authority (APA) issued a Notice of Long-Term Power Availability for an allocation of Post-2017 Hoover Power. The notice enabled entities like the City of Maricopa to request a portion of the capacity and energy produced at Boulder Canyon Project (Hoover Dam). The notice was put out in advance of the current Power Sales Contract (PSC) coming to an end in 2017. The contract ending in 2017 was a 30 year contract for power. This PSC is a 50 year contract.
Through the work of current and former City staff, the City of Maricopa was able to secure an allocation under the notice. Per the agreement, the City was allocated 164 kW of capacity and 357,822 kWh of energy. The amount delivered to the City is based on the power generated at Hoover Dam and the allocation represents the capacity/energy if Hoover ran at 100% capacity for a year. Utilizing more realistic projections based on a variety of factors, ED3 projects the Hoover allocation to save the City between $1,500 and $5,500 a year over the first ten years of the contract for a total of $42,000 in savings. If the projections stayed consistent, the next 40 years would see the City saving an additional $200,000.
This item will be presented by TJ Hansell, Grants Coordinator.
STAFF RECOMMENDATION
Staff recommends the Mayor and City Council enter into an agreement between the Arizona Power Authority and the City of Maricopa for the purchase and sale of Hoover Capacity and Hoover Energy up to 185 kW (capacity) and 400,000 kWh (energy). Approval provides the City Manager with the authority to sign and execute the Hoover PSC and all applicable documents thereafter. Discussion and Action.