Needles, CA: Needles City Council and Needles Public Utility Authority approved the purchasing of renewable energy credits to comply with 2016 standards.
Members of the Needles City Council and Needles Public Utility Authority approved to purchase of Portfolio Content Category (“PCC”) 3 Renewable Energy Credits to comply with the Renewable Portfolio Standard (“RPS”) procurement percentage for CY 2016, the final year of Compliance Period 2 comprising CYY 2014, 2015, and 2016.
The vote to approve happened during the Needles City Council and Needles Public Utility Authority Meeting held on Tuesday, December 8th, 2015 inside the Needles City Council Chambers in Needles, California.
** Information regarding Agenda Item #5 from the City of Needles: **
The City of Needles is mandated by the California Air Resources Board (“C.A.R.B.”) to purchase R.E.C.’s to offset the Green House Gases (“G.H.G.”) generated from the non-renewable energy (Brown Power) it purchases.
The RPS procurement percentage obligation for 2015 is 25% of actual/forecasted retail sales. Actual retail sales for 2014 were 53,076,000; multiplied by 25% equals a compliance target of 13,269 PCC-3 RECs. PCC-3 RECs can only be purchased in increments of 1,000, therefore 14,000 PCC-3s is the minimum to be purchased.
The City of Needles utilized Evolution Markets to broker the purchase of 2014 and 2015 PCC-3s with good results- attractive pricing and good customer service.
2014 RPS obligation: 52,000,000 kWhX 20% = 10,400 X $1.10/unit = $11,440
2015 RPS obligation: 52,000,000 kWhX 20% = 10,400 X $1.375/unit = $14.300
Sub Total $25,740
Plus: Broker Commission to Evo Markets ($0.05/Unit X 20,800 = $ 1,040
Grand Total $26,780
2016 RPS obligation through Biomass One, LP 14,000 X $1.25/unit= $17,500
Plus: Broker Commission to Evo Markets ($0.03125/unit X 14,000= 438
** See Evolution Markets Transaction Confirmation in agenda item packet for more information (Trade Date: Thursday, October 29th, 2015 — Transaction: # 256093). **
Final Contract is subject to Needles City Council approval which is expected to occur in December 2015.
As for fiscal impact, $17,938 to be funded from Account 580-4750-473.63-10 – Electrical Power Purchase.
As for environmental impact, “N/A”; not applicable, not available, or no answer.
The recommended action, to approve the purchase of Portfolio Content Category (“PCC”) 3 Renewable Energy Credits to comply with the Renewable Portfolio Standard (“RPS”) procurement percentage for CY 2016.
(Action Needed Agenda Item)
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For more information regarding the Needles City Council Meetings, please contact Dale Jones in the City Clerk’s Office at the City of Needles at: 1 (760) 326-2113 Ext. 345.