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San Jose Ca.Gov
File #: 25-333    Version: 1
Type: Environmental & Utility Services Status: Agenda Ready
File created: 3/25/2025 In control: City Council
On agenda: 4/8/2025 Final action:
Title: Actions Related to the Agreements with MRP Pacifica Marketing III, LLC for San José Clean Energy Resource Adequacy.
Attachments: 1. Memorandum, 2. Presentation - est. 5 minutes

...Title

Actions Related to the Agreements with MRP Pacifica Marketing III, LLC for San José Clean Energy Resource Adequacy.

...Recommendations

Adopt a resolution authorizing the Director of the Energy Department to negotiate and execute a Cover Sheet agreement with MRP Pacifica Marketing III, LLC setting forth common terms for the following four transactions:

(a) Negotiate and execute an agreement with MRP Pacifica Marketing III, LLC to purchase resource adequacy associated with the Tracy Combined Cycle Gas facility for a maximum term of 12 years beginning in 2027, in an amount not to exceed $10,700,000 annually and up to $128,400,000 in aggregate;

(b) Negotiate and execute a further agreement with MRP Pacifica Marketing III, LLC to purchase resource adequacy associated with the Tracy Long-Duration Energy Storage facility for a maximum term of 14 years beginning in 2027, in an amount not to exceed $1,500,000 annually and up to $21,000,000 in aggregate;

(c) Negotiate and execute a further agreement with MRP Pacifica Marketing III, LLC for financial settlements associated with the Tracy Combined Cycle Gas facility for a maximum term of 12 years beginning in 2027, in an amount not to exceed $11,300,000 annually and up to $135,600,000 in aggregate; and

(d) Negotiate and execute a further agreement with MRP Pacifica Marketing III, LLC for financial settlements associated with the Tracy Long-Duration Energy Storage facility for a maximum term of 14 years beginning in 2027, in an amount not to exceed $1,600,000 annually and up to $22,400,000 in aggregate; to be paid solely from the San José Clean Energy Operating Fund and subject to the annual appropriation of funds.

CEQA: Not a Project, File No. PP17-003. Agreements/Contracts (New or Amended) resulting in no physical changes to the environment. (Energy)