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Approving a Contract with Affordable Solar Installation, Inc. to Finance, Construct, Own, Operate and Sell Electricity to the Water Authority from a Solar Energy Facility at the San Juan Chama Drinking Water Treatment Plant
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The Water Authority is requesting approval from the Board to negotiate and contract with Affordable Solar Installation, Inc. (Affordable) to finance, construct, own, operate and sell electricity to the Water Authority from a solar energy facility (SEF) at the San Juan-Chama Drinking Water Treatment Plant (WTP).
If approved by the Board, a Power Purchase Agreement (PPA) will be executed by the Water Authority and Affordable to enable Affordable to finance and build a SEF at the WTP in 2015/16. Affordable will provide the capital to build the SEF, operate and maintain the plant over a 25-year term. The agreement is structured to allow the Water Authority the option to purchase the facility throughout the term of the agreement. At the end of the 25-year term the Water Authority will have the option to purchase the system at market value, or Affordable will remove the system at no cost to the Water Authority.
The Water Authority will purchase all of the electricity from the SEF at a rate of $0.0775 per kWh. The Water Authority's energy rate from the SEF will escalate at a rate of 1.5% per year over the 25-year term. The Water Authority's current blended PNM rate at the WTP is $0.1420 per kWh and conservatively projected to increase at an annual rate of 2%. The solar plant is projected to save the Water Authority $8,200,000 over the 25-year term (see the annual savings analysis attached). During the first 12 months of operation the plant is estimated to produce 4.1MWh's, which is approximately 10% of the current 44.7MWh WTP load. In addition, Affordable will provide the Water Authority real-time, online access to solar production, energy load, and energy savings data.
PNM has conditionally awarded the Water Authority an 8...
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