Title
A RESOLUTION TO APPROVE THE FORM AND AUTHORIZE THE EXECUTION OF BLUE CREEK WIND SCHEDULE WITH AMERICAN MUNICIPAL POWER, INC. AND TAKING OF OTHER ACTIONS IN CONNECTION THEREWITH; AND DECLARING AN EMERGENCY
Brief Description: American Municipal Power (AMP) has negotiated a power purchase agreement (PPA) for competitively priced green energy and capacity from the Blue Creek Wind Project located in Northwest Ohio. The City’s power supply consultant is recommending Hudson purchase 3MW from the PPA to replace a portion of retired landfill green energy, and a small portion of its remaining requirements need.
Body
Legislative History
None
Purpose & Explanation
The Blue Creek Wind Farm (BCW) is a 304 MW wind generation facility on 80 acres of land in Van Wert Ohio (see attached). Over the past few years, AMP power supply staff has been actively looking at potential opportunities for Hudson to bring on additional renewable energy sources at competitive pricing as current resource contracts expire. With the landfill gas going offline at the end of 2021, and the remaining requirements contract reaching term at the end of 2024, AMP recommended the City purchase 6 MW at a price not to exceed $59.00/MW for a term of 5 years.
Upon review of AMP’s recommendation, the City’s Power Supply Consultant Mr. John Courtney recommended Hudson should only purchase 3MW as opposed to 6MW. Mr. Courtney indicated that 6MW is too many MW and would take up nearly half of the City’s “open position” in the overall portfolio. Mr. Courtney’s opinion is there may be opportunities in the future that will offer better terms than the current BCW offer. As such, staff is in agreement with signing on the BCW PPA for 3MW at a price not to exceed $59.00/MW for a term of 5 years. This purchase will put the City’s renewable position at approximately 23.4%.
Amp continues to investigate and review the following opportunity.
• Potential solar power resource PPA in the PJM footprint including behind the meter in AMP communities for 2.3 MW which would represent 3% of the City’s annual energy needs. If feasible this would be in implemented in 2026.
If the above materialize, the City’s renewable position could reach approximately 26.4%
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
X Other: purchase per master agreement with AMP.
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required
Does this legislation require use of an emergency clause?
X Yes. To expedite contract process and pricing.
No
Recommendation
Suggested Action
Staff recommends the City Council pass this resolution as described.
Submitted by,
Thomas J. Sheridan, City Manager
Frank J. Comeriato, Jr. Asst. City Manager-Operations
Kevin Powell, Director of Public Works