Title
A RESOLUTION TO APPROVE THE FORM AND AUTHORIZE THE EXECUTION OF POTOMAC ENERGY 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 energy and capacity from the Potomac Energy Project located in Northwest Virginia. The City's power supply consultant is recommending Hudson purchase 1.5 MW from the PPA to replace a portion of its remaining requirements.
Body
Legislative History
None
Purpose & Explanation
AMP power supply staff have been actively looking at potential opportunities for Hudson to bring on additional sources at competitive pricing.
AMP has secured a 15-year Power Purchase Agreement (PPA) with Potomac Energy Partners for a 300 MW electricity supply. This project is a 300 MW agreement, including duct firing, with the Potomac Energy Center from their existing combined cycle power plant in the PJM Virginia Dominion Zone. The purchase agreement is planned for a June 1, 2026 start, with a term of fifteen years.
The Potomac Energy Center is an Intermediate resource power supply, these types or resources typically delivered during what is known as on-peak hours. In the market, on-peak is defined as the 5x16 period (5 days a week, Monday through Friday and 16 hours a day, 7 am through 11 pm). The Potomac Energy combined cycle PPA is designed to be an intermediate resource, but with its low heat rate, it is expected that it will be economical to operate during many of the non-5x16 hours throughout the year, allowing it to fill some base load needs as well.
AMP recommends that Hudson purchase 1.5 MW from the Combined Cycle PPA. This would provide additional intermediate / base load power and would provide approximately 5% of Hudson's annual energy needs and will start in 2027.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contrac...
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