Highlights From Jan. 28 Council Meeting

By KIRSTEN LASKEY
Los Alamos Daily Post
kirsten@ladailypost.com

Improvements to the irrigation system at Overlook Park, entering a power purchase agreement to be supplied with energy from sustainable sources and a modification to the electric energy and power coordination agreement between Los Alamos County and the Department of Energy were among the items approved during the regular County Council meeting Tuesday night.

Council Approves $800,000 loan/grant from New Mexico Finance Authority

Council unanimously passed an ordinance for a $800,000 loan/grant from the New Mexico Finance Authority. The loan/grant will be used to replace the effluent booster station at Overlook Park. Department of Public Utilities Deputy Manager James Alarid said the booster station is part of the irrigation system at the park. He said the booster station is expected to be constructed during the winter and will be ready for use for this year’s irrigation season.

Councilor Katrina Martin said she was happy to approve the ordinance, saying, “since this booster station is older than Councilor Robinson and myself, I think this is a great example of updating infrastructure.”

Council Approves Power Purchase Agreement with UNIPER

Los Alamos County will now receive more of its energy from sustainable sources after Council unanimously agreed to enter a power purchase agreement (PPA) with Uniper Global Commodities.

The agreement will provide the County with 15 megawatts of energy from wind and solar projects in New Mexico. This energy will be firm; meaning that during periods of time when the sun isn’t shining or the wind isn’t blowing, Los Alamos will still receive energy. Uniper will purchase power from the market, anticipated to largely come from fossil fuel generating resources such as natural gas power plants, as needed to account for the intermittent nature of renewables.

In earlier interview with the Los Alamos Daily Post, DPU Deputy Utilities Manager Steve Cummins said, “The bottom line is that the County would get 15 megawatts around the clock for a total of 131,400 megawatt hours annually.  Based on the wind and solar generation profiles, approximately 80 percent would be renewable and 20 percent from market purchases.”

The rate per megawatt hour will be $36.67, which would not change during the 15-year term of the PPA. Cummins told the Daily Post this would allow the DPU to save money; it is estimated during the 15-year term, there would be more than $11 million in savings when compared against today’s best forecast on market power prices. He explained that the PPA would replace a significant amount of power that is currently being purchased from the market.

Several members of Council shared their enthusiasm for the project.

“This is a major move forward and we are just delighted to get a very competitive price,” Councilor Pete Sheehey said. “We’re looking forward to this taking effect.”

Councilor James Robinson said he was also supportive of the agreement. He said the power agreement shows the County’s commitment for getting clean power from numerous power sources.

Council Approves A Modification of the Electric Energy and Power Coordination Agreement

With the passage of the power purchase agreement with Uniper Global Commodities, Council further approved to modify the Electric Energy and Power Coordination Agreement between the County and the Department of Energy (DOE).

The modification will now recognize the energy generated from the Uniper power project as a power pool-approved resource.

According to agenda documents, Los Alamos County and DOE established a power pool in which both parties contribute to the power from, and cost of each, of the “pool approved resources,” according to agenda documents.

Furthermore, the costs are allocated back to the parties pro rata according to the party’s usage. Historically, the County contributed about 75 percent of the resources while DOE accounted approximately 80 percent of the load.

DPU Manager Bob Westervelt said the revision in the coordination agreement will help support the Los Alamos National Laboratory, which is DPU’s largest customer as well as the County’s biggest employer. Plus, it helps the County move closer to its carbon neutral goal.

He added the laboratory has its own sustainable energy initiative.

“This does support their initiative for renewable energy,” Westervelt said.

Council Appoints New Members to Community Development Advisory Board

Anne Dillane and John Gustafson were appointed to serve on the Community Development Advisory Board. The third nominee was Kyle Wheeler. All nominees were thanked by Council for their interest in supporting the Board and the time taken to submit applications and interview with the selection committee.

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