Pasadena Water & Power
First Solar, Inc.
Kingbird Solar Project
Power Purchase Agreement
City Council – Agenda Item 13
September 9, 2013
Project & Contract Overview
Pasadena Water & Power
•
20 MW (AC) single-axis tracking
solar PV
•
To be located on 324 acres in
Rosamond, CA
>
Site includes Kingbird B (another 20 MW
project – output purchased by SCPPA)
•
Guaranteed commercial operation
by January 2016 (Fiscal Year 2016)
•
Add approx. 5.5% RPS
•
PWP to pay for all energy “as
available”
•
> ~60,000 MWh/year (1st year)
> Expected output degradation
~0.5% per year
•
•
•
2
Price = $68.50/MWh through term
of contract
Includes Resource Adequacy
capacity
Option to Purchase
20 year term with option to extend
by 5 years
Project Benefits
Pasadena Water & Power
• RPS Category 1 resource relatively close to Pasadena
• Feasible to operate and maintain if purchased
3
Project Benefits
Pasadena Water & Power
• Portfolio Fit
> Project size is a good match for PWP requirements
 20 MW x 33% Capacity Factor
> PV production is variable, but generally aligns well with
PWP demand
4
Project Benefits
Pasadena Water & Power
• Viability
> Several initial milestones already achieved
 Site control, interconnection studies, CEC pre-certification, CEQA;
> Experienced project developer (First Solar, Inc.) with several utility scale
projects already operating/under construction
> Solar PV is a proven technology
5
Project Benefits
Pasadena Water & Power
• Value
> Renewable energy, environmental attributes and
system resource adequacy.
> Facility purchase option at the 10th, 14th, or 18th
contract year, or in the event of a default under the
power purchase agreement.
> Price is competitive with other offers for similar
renewable products.
6
Risks
Pasadena Water & Power
• Some risks Include:
> Project development/construction
failure or delay
> Counterparty credit/default
> Resource underperformance
> Comparative price risk
 Future or alternative resources
may have lower prices
• Contractual provisions attempt to
mitigate many risks, e.g.:
• Although there is risk that future
resources may have lower
prices, this contract is also a
hedge against future price
increases and volatility
> Performance security
> Liquidated damages
> Guaranteed energy production
7
Price Comparison
Pasadena Water & Power
Renewable Energy Contracts Price Comparison
Resource Name/Type
Contract
Execution
Contract Energy Price1 by Calendar Year ($/MWh)
2014
2015
2016
2017
2020
2025
Proposed Kingbird Solar
2013
-
-
$68.50
$68.50
$68.50
$68.50
Silverado Solar
(+ $5.10/MWh for RA, if available)
2012
-
$77.34*
$78.50*
$79.68*
$83.32*
$89.76*
WM Biomethane
2011
$94.92
$94.92
$94.92
$94.92
$94.92
-
Sequent Biomethane
2011
$94.92
$94.92
$94.92
$94.92
$94.92
-
EDF Biomethane
2011
$98.00
$98.00
$98.00
$98.00
$98.00
-
Milford Wind
2009
$70.94
$72.19
$73.45
$74.74
$78.73
$85.86
Ormat Geothermal Phase 2
2008
$82.01
$83.24
$84.49
$85.76
$89.67
$96.60
Chiquita Canyon LFG
2006
$65.25
$65.25
$65.25
$65.25
$65.25
$65.25
Ormat Geothermal Phase 1
2005
$64.77
$65.74
$66.73
$67.73
$70.83
$76.30
Iberdrola Renewables
2003
$53.50
$53.50
$53.50
$53.50
$53.50
-
$43.99*
$46,.19*
$48.50*
$50.92*
$58.95*
$75.23*
2013 Market Forecast (Brown Power)
[1] Contract prices exclude costs of transmission, losses, and integration fees
[price with * does not include RA capacity; all others do]
8
Renewable Portfolio
Pasadena Water & Power
Current Renewable Energy Portfolio Summary (GWh)
Calendar Year
2015
2016
2020
2025
Azusa Hydro
5
5
5
5
Iberdrola High Winds
14
14
14
-
Minnesota Methane LFG
42
42
-
-
Ormat Geothermal
16
16
16
16
Milford Wind Phase 1
11
11
11
11
Chiquita Canyon LFG
37
37
37
37
EDF Biomethane
13
13
14
-
Sequent Biomethane
29
30
38
-
Waste Management
Biomethane
41
41
41
-
Silverado Solar
32
32
32
32
Proposed Kingbird Solar
-
60
58
57
Total Renewable Supply
240
301
266
158
1168
1196
1196
25.8%
22.2%
Retail Sales
1161
%Renewable
21.3%
[1]
A gigawatt-hour (“GWh”) is equal o 1,000 megawatt-hours (“MWh”)
9
13.2%
Impact for a Typical Customer Using 500 KWh/Month
Pasadena Water & Power
CURRENT
FUTURE
(without Kingbird)
(2016 onward with Kingbird)*
TOTAL $87.20
TOTAL $87.72
*Assumes other charges in the electric bill remain the
same as current bill
Note: Current total bill includes all existing renewable contracts
10
Fiscal Impact - Cumulative
Pasadena Water & Power
Before Kingbird:
• Cumulative net impact of
all existing renewable
contracts in the energy
portfolio:
After Kingbird:
• Cumulative net impact of
all renewable contracts in
the energy portfolio:
> Approximately $8.5 million
per year
> Approximately 0.73 cents
per kWh starting in January
2016
> Approximately $7.3 million
per year
> Approximately 0.62 cents
per kWh
Cumulative net impact will increase by approximately:
• $1.2 million per year
• 0.11 cents per kWh
• $0.52/month for a 500 kWh average customer
11
Thank You ~ Questions?
Pasadena Water & Power
Back Up Slides
12
Appendix – RPS Portfolio After Kingbird
Pasadena Water & Power
Pasadena Water and Power
SBX1-2 Mandatory RPS Procurement Plan (by Calendar Year)
Compliance Period 1
Compliance Period 2
2011
2012
2013
2014
2015
2016
Estimated PWP Electric Sales (Load)
SBX1-2 Mandatory RPS Procurement Requirement (%)
SBX1-2 Mandatory RPS Requirement for PWP (GWh)
PWP SBX1-2 RPS Already Met w/Current Contracts (% of Load)
PWP SBX1-2 RPS Already Met w/Current Contracts (GWh)
Portfolio Content Category 0 (GWh)
Portfolio Content Category 1 (GWh)
Portfolio Content Category 2 (GWh)
Portfolio Content Category 3 (GWh)
RPS Contracts Under Negotiation (GWh)
Portfolio Content Category 1 (GWh)
Portfolio Content Category 2 (GWh)
Portfolio Content Category 3 (GWh)
Future SBX1-2 Minimum Purchase Requirements (GWh)
Portfolio Content Category 1 (GWh)
Portfolio Content Category 2 (GWh)
Portfolio Content Category 3 (GWh)
Total SBX1-2 RPS Procurement GWh
Portfolio Content Category 0 (GWh)
Portfolio Content Category 1 (GWh)
Portfolio Content Category 2 (GWh)
Portfolio Content Category 3 (GWh)
SBX1-2 RPS Procurement Limits
Portfolio Content Category 1 Minimum (GWh) ≥
Portfolio Content Category 3 Maximum (GWh) ≤
GWh
1,140.3
169.1
33.3
0.0
14.7
14.7
GWh
1,140.1
20%
682.0
22.3%
761.5
125.9
99.9
0.0
25.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
761.5
421.0
300.2
0.0
40.3
GWh
1,129.7
126.1
167.0
0.0
0.0
130.5
25.5
25.0
Compliance Period 3
2017
2018
2019 2020+
GWh
1,133.4
20%
226.7
18.3%
207.5
126.1
81.4
0.0
0.0
0.0
0.0
0.0
0.0
19.2
0.0
4.1
15.1
226.7
126.1
81.4
4.1
15.1
GWh
1,128.5
20%
225.7
21.3%
240.8
126.1
114.8
0.0
0.0
14.7
14.7
0.0
0.0
0.0
0.0
0.0
0.0
255.5
126.1
129.5
0.0
0.0
GWh
1,120.8
25%
280.2
21.7%
243.7
126.3
117.4
0.0
0.0
87.6
87.6
0.0
0.0
0.0
0.0
0.0
0.0
331.2
126.3
204.9
0.0
0.0
GWh
1,110.1
27%
299.7
18.3%
202.7
83.9
118.9
0.0
0.0
87.2
87.2
0.0
0.0
9.8
0.0
0.0
9.8
299.7
83.9
206.1
0.0
9.8
GWh
1,099.5
29%
318.8
18.6%
204.2
83.9
120.4
0.0
0.0
86.8
86.8
0.0
0.0
27.8
0.0
4.3
23.5
318.8
83.9
207.2
4.3
23.5
GWh
1,088.8
31%
337.5
18.9%
205.7
83.9
121.9
0.0
0.0
86.4
86.4
0.0
0.0
45.5
0.0
20.1
25.4
337.5
83.9
208.2
20.1
25.4
GWh
1,078.2
33%
355.8
19.3%
207.8
84.1
123.7
0.0
0.0
86.0
86.0
0.0
0.0
62.0
0.0
34.8
27.2
355.8
84.1
209.7
34.8
27.2
65.4
15.1
64.8
14.9
100.0
23.1
161.9
21.6
176.2
23.5
190.3
25.4
203.8
27.2
Pasadena Water and Power
Pasadena Voluntary RPS Procurement Plan (by Calendar Year)
Compliance Period 1
Compliance Period 2
2011
2012
2013
2014
2015
2016
Estimated PWP Electric Sales (Load)
Procurement Plan to Meet PWP Voluntary RPS Target (%)
Pasadena Voluntary RPS Target (GWh)
PWP Voluntary RPS Already Met w/Current Contracts (% of Load)
PWP Voluntary RPS Already Met w/Current Contracts (GWh)
Required Future SBX1-2 Procurement (GWh)
Additional Future Purchases for PWP Voluntary RPS (GWh)
Total Voluntary RPS Procurement GWh
GWh
1,140.3
24.5%
279.7
24.5%
279.7
0.0
0.0
279.7
GWh
1,140.1
24.6%
280.8
22.4%
255.7
0.0
25.0
280.8
13
GWh
1,129.7
25.9%
293.1
20.9%
236.0
0.0
57.1
293.1
GWh
1,133.4
26.0%
294.7
18.3%
207.5
19.2
68.0
294.7
GWh
1,128.5
27.5%
310.3
21.3%
240.8
0.0
69.5
310.3
GWh
1,120.8
30.0%
336.2
21.7%
243.7
0.0
92.5
336.2
Compliance Period 3
2017
2018
2019 2020+
GWh
1,110.1
32.5%
361.0
18.3%
202.7
9.8
148.5
361.0
GWh
1,099.5
35.0%
385.0
18.6%
204.2
27.8
153.0
385.0
GWh
1,088.8
37.5%
408.8
18.9%
205.7
45.5
157.6
408.8
GWh
1,078.2
40.0%
431.4
19.3%
207.8
62.0
161.5
431.4
Selection Process
Pasadena Water & Power
• Project was offered July 24, 2013 into, and selected as
part of, the open SCPPA Request for Proposal process.
• Determined by PWP to be one of the “best fit/least cost”
resources from among almost 300 offers.
• Also determined to be exempt from Pasadena’s
competitive bidding rules as a contract for professional or
unique services, and as a contract potentially relating to
the acquisition of real property (includes a purchase
option).
14
First Solar Experience
Pasadena Water & Power
SOME COMPLETED FIRST SOLAR FACILITIES
Project
Location
Project Size
in MW (AC)
Power Purchase
Agreement (PPA)
Third Party Owner/
Purchaser
Blythe
Blythe, CA
21
SCE
NRG Energy, Inc
Copper Mountain 1
Boulder City, NV
58
PG&E
Sempra USG&P
Cimarron
Colfax County, NM
21
Tri-State
Southern Company & Turner Renewable
Energy
Silver State North
Primm, NV
50
NV Energy
Enbridge, Inc
Roadrunner Santa Teresa
Santa Teresa, NM
20
El Paso Electric
NRG Energy
Sarnia
Sarnia, Ontario, Canada
80
Ontario Power Authority
Enbridge
15
First Solar Experience (cont.)
Pasadena Water & Power
SOME FIRST SOLAR FACILITIES UNDER CONSTRUCTION
Project
Location
Project Size
in MW (AC)
Power Purchase
Agreement (PPA)
Third Party Owner/
Purchaser
Expected
Substantial
Completion
Topaz
San Luis Obispo, CA
550
PG&E
MidAmerican
2014/2015
Desert Sunlight
Desert Center, CA
550
PG&E/SCE
Agua Caliente
Yuma County, AZ
290
PG&E
NextEra/GE/
Sumitomo
NRG/
MidAmerican
2014/2015
2014
AV Solar Ranch One
Los Angeles County, CA
230
PG&E
Exelon
2013
Imperial Energy Center
South
Imperial County, CA
130
SDG&E
Tenaska
2013
Copper Mountain 2
Boulder City, NV
58
PG&E
Sempra USG&P
2015[2]
PNM2
Walpole
Belmont
Amherstburg 1
DEWA
NM
Ontario, Canada
Ontario, Canada
Ontario, Canada
UAE
22
20
20
10
13
UOG
OPA
OPA
OPA
DEWA
PNM
GE/Alterra
GE/Alterra
GE/Alterra
DEWA
2013
2013
2013
2013
2013
Campo Verde
Imperial County, CA
139
SDG&E
N/A
2013
Macho Springs
Maryland Solar
Lost Hills
Deming, NM
Maryland
Kern County, CA
San Bernadino County,
CA
50
20
32
El Paso Electric
FE Solutions
PG&E
N/A
N/A
N/A
2014
2013
2015/2016
300
SCE
N/A
2016
Stateline
Silver State South
Clark County, NV
250
SCE
N/A
2016
AGL[6]
Australia
159
AGL
N/A
2015
Cuyama
San Joaquin Valley, CA
40
PG&E
N/A
2015/2016
16