HomeMy WebLinkAbout~Master - Amendment to Purchase Power Agreement with Garden Wind/NextEra RESOLUTION NO. 12-605
RESOLUTION APPROVING AMENDMENTS TO PURCHASE POWER AGREEMENT
WITH GARDEN WIND (NEXTERA)
FOR THE CITY OF AMES,IOWA
WHEREAS,on September 8,2009,the City of Ames entered into a 20-year Purchase Power
Agreement with NextEra - Garden Wind, LLC, and under this agreement, the City agreed to
purchase the output from 36 MW of a 150 MW wind farm near Zearing, Iowa; and,
WHEREAS, the remaining 114 MW output from the farm has since been contracted to a
third party; and,
WHEREAS,the output of the wind farm has been measured at a single point of connection
to the electric grid from a common meter, and billing between the two off-takers is split on a
76%/24%basis; and,
WHEREAS,presently, operating goals between the City and the other third party off-taker
have been similar in nature; and,
WHEREAS,beginning March 2013,the Midwest Independent System Operator(MISO)is
changing how intermittent generation resources, such as wind and hydro power,will be scheduled
onto the electric grid; and,
WHEREAS, after discussing these operational changes with NextEra- Garden Wind, staff
has determined that the current billing and operational practices will not work under the new MISO
construct; and,
WHEREAS, after considering a new, complex billing algorithm and operating parameters
for the farm, staff has suggested that the farm be "split" and 24 wind turbines (each having a
nameplate rating of 1.5 MW)be assigned representing the City's 36 MW of capacity; and,
WHEREAS, these turbines would then be separately metered,billed, and operated; and,
WHEREAS,NextEra has agreed to pay for all costs associated with this change, and it has
proposed an amendment to the existing agreement creating the separation of the wind farm into
proportionate shares for the off-takers.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the amendment to the Purchase Power Agreement with NextEra - Garden Wind is hereby
approved.
ADOPTED THIS 27`h day of November, 2012.
`-4 A40 tom• 6�11
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Orazem
Seconded by: Goodman
Voting aye: Davis, Goodman, Larson, Orazem, Szopinski, Wacha
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 27t'day of November, 2012.