BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Slate Energy Storage Project Rate Agreement for Battery Storage with the Power and Water Resources Pooling Authority.
End
RECOMMENDATION:
Recommendation
Authorize the Chief Executive Officer to negotiate and, following Valley Water's compliance with the California Environmental Quality Act as needed, execute the Slate Energy Storage Project Rate Agreement with the Power and Water Resources Pooling Authority to add battery storage to the Recurrent Energy Slate solar project.
Body
SUMMARY:
On November 20, 2018, the Santa Clara Valley Water District (Valley Water) Board of Directors delegated the Chief Executive Officer (CEO) the authority to negotiate and execute a rate agreement with the Power and Water Resources Pooling Authority (PWRPA) to allow Valley Water to secure a 1.5 megawatt (MW) solar allocation from the Recurrent Energy Slate solar project (Solar Project), a 330 MW utility-scale solar project in Kern County. The rate agreement for the solar allocation was executed by Valley Water's CEO in April 2019.
PWRPA is also participating in the development of the Slate Energy Storage Facility, which will enable storage of electricity produced by the Solar Project. Through PWRPA, Valley Water has negotiated a 500-kilowatt battery energy storage allocation from the Slate Energy Storage Facility, which will allow storage of Valley Water's electrical allocation from the Solar Project. The proposed Slate Energy Storage Project Rate Agreement (Battery Storage Rate Agreement) would pass the costs (as well as savings) associated with Valley Water's battery storage allocation from PWRPA to Valley Water during the anticipated 20-year life of the Solar Project.
The addition of a battery energy storage system provides greater flexibility in managing the generated output of Valley Water's electrical allocation from the Solar Project to adapt to changing market and demand conditions. The battery energy storage system will...
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