(1) Pursuant to Charter Section 373, the Board of Water and Power Commissioners shall have authority to enter into contracts for the purchase of local renewable energy from renewable electric generating facilities (as defined below) and related interconnection agreements, subject to all the following limitations:
(a) Contracts for the purchase of local renewable energy and associated capacity rights and environmental attributes and related interconnection agreements shall be for a period not to exceed 25 years from the date of execution.
(b) The size of the local renewable energy purchase program authorized herein shall not exceed 450 megawatts cumulative rated generation capacity.
(c) The purchase price set forth in every contract shall not exceed an average of $250.00 per megawatt-hour.
(d) A renewable electric generation facility subject to such contracts shall meet all the following criteria:
(i) be located within the electric service territory of the Department of Water and Power;
(ii) have an effective capacity of not more than ten megawatts;
(iii) be interconnected and operate in parallel with the electrical distribution grid of the Department of Water and Power;
(iv) be located and interconnected to the electrical distribution grid in a manner that optimizes the deliverability of electricity generated at the facility to load centers;
(v) comply with all applicable laws and building standards, and utility interconnection requirements;
(vi) all energy generated by such renewable electric generation facility and associated environmental attributes (including Renewable Energy Certificates (RECs)) shall be eligible to be credited against the renewables portfolio standard implemented by the Department of Water and Power pursuant to Section 399.30 of the California Public Utilities Code or any successor; and
(vii) the renewable electric generation facility shall demonstrate site control for the term of the contract.
(e) No renewable electric generation facility subject to such contract may also participate in any net metering program.
(f) No renewable electric generation facility subject to such contract may receive or have received Los Angeles Department of Water and Power ratepayer-funded on-site generation incentives. A renewable electric generation facility combined with an electric energy storage system shall not be prohibited from receiving incentives provided pursuant to a local agency, state, or federal program.
(g) All RECs and other credits, benefits, emissions reductions, offsets and allowances that are recognized under current or future laws, regulations or policies and associated with the electricity purchased and its displacement of conventional energy generation shall belong to the Department of Water and Power.
(h) Every contract shall contain the payment, interconnection, security, default, remedy and other terms and conditions, as authorized by the Board of Water and Power Commissioners.
(i) Prior to entering into contracts pursuant to this authority, the Board of Water and Power Commissioners by resolution shall establish the program under which the purchase of local renewable energy is made.
(j) Notwithstanding Section 10.5.2(d), contracts for the purchase of local renewable energy from facilities combined with an electric energy storage system may allow for the use of energy generated by such renewable electric generation facilities to serve customer load directly (i) during a grid outage when standard electric service from the Los Angeles Department of Water and Power is not available and (ii) to reduce customer energy consumption from the grid as determined by the Los Angeles Department of Water and Power. In no event shall any contracts for the purchase of local renewable energy permit a third-party sale of energy generated by such renewable electric generation facility, or any proxy for the sale of energy associated with the facility and energy storage system, to any person other than the Los Angeles Department of Water and Power.
(2) The Board of Water and Power Commissioners, under the authority of Charter Section 604(c), is authorized to delegate to the General Manager of the Department of Water and Power the authority to enter into contracts pursuant to this section.
SECTION HISTORY
Former Section Added by Ord. No. 170,725, Eff. 11-16-95.
Former Section Repealed by Ord. No. 173,236, Eff. 6-19-00, Oper. 7-1-00.
Added by Ord. No. 182,108, Eff. 5-17-12.
Amended by: Subsecs. (1)(b), (1)(c), and (1)(d)(ii), Ord. No. 186,467, Eff. 1-23-20; Subsec. (1)(f) amended and Subsec. (1)(j) added, Ord. No. 186,943, Eff. 4-29-21.