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Approval of Contract with Affordable Solar Installation, Inc. to Finance, Construct, Own, Operate and sell electricity to the Authority from a Solar Energy Facility at the San Juan - Chama Drinking Water Treatment Plant
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Requesting approval to delegate authority to the Executive Director to enter into a contract with Affordable Solar Installation, Inc. (Affordable) to finance, construct, own, operate and sell electricity to the 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 Albuquerque Bernalillo County Water Utility Authority (Water Authority) and Affordable to enable Affordable to finance and build a SEF at the WTP in 2018. Affordable will provide the capital to build the SEF, operate and maintain the plant over a 30-year term. The Water Authority will have the option to purchase the facility throughout the term of the agreement. At the end of the 30-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 the electricity from the SEF at a rate of $0.0535 plus a lump sum payment of $350,000 per year. Those costs combined yield and energy rate for the WTP of $.091 per kWh under the current PNM rate at the WTP.
The $350,000 per year lump sum payment is to be used to offset the PNM renewable energy rider payment agreement the Water Authority has with PNM for generation of renewable energy. This yearly payment will make it efficient and effective to comply with the Water Authorities agreement with PNM, the Renewable Energy Act, and the PRC's order in case No. 15-0166.
The Water Authority's energy rate from the SEF will escalate at a rate of 1.5% per year over the 30-year term. The Water Authority's current PNM rate at the WTP is $0.1450 per kWh and conservatively proje...
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