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Res 2018-042/approving and authorizing the City Manager to execute a wholesale electric power purchase agreement with AEP Energy Partners, Inc. to supply wind energy to the San Marcos Electric Utility
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Res 2018-042/approving and authorizing the City Manager to execute a wholesale electric power purchase agreement with AEP Energy Partners, Inc. to supply wind energy to the San Marcos Electric Utility
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11/15/2018 3:22:38 PM
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3/26/2018 11:05:07 AM
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City Clerk - Document
Resolutions
City Clerk - Type
Approving
Number
2018-42
Date
3/20/2018
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2.1 Purchase and Sale Obligation. Subject to, and in accordance with, the terms and <br />conditions of this Transaction, Seller agrees to sell and deliver, and Buyer agrees to <br />purchase, receive, and pay for, Buyer's Share of the Wind Energy, 1t is understood <br />between the Parties that if the nameplate of the Facility is ever increased to an amount <br />greater than 154 MW, Buyer's Share of the Energy shall be adjusted downward so that <br />Buyer's Share of the nameplate reflects the intended 12 MW to 154 MW ratio share. <br />Buyer will not have the right to the Renewable Energy Credits, if any, arising from <br />delivery of Buyer's Share of such Wind Energy. All of Seller's obligations to sell and <br />deliver Buyer's Share of the Wind Energy are Unit Contingent, There shall be no <br />minimum amount of Wind Energy required on an hourly basis. <br />2.2 Unit Contingent. The Wind Energy is intended to be supplied only from the <br />Facility and Seller's failure to deliver such Energy is excused to the extent the Facility <br />(including all facilities on Seller's side of the Delivery Point) is affected by or <br />unavailable as a result of (i) an Outage, (ii) Force Majeure, (iii) failure to perform by the <br />Owner/Operator, (iv) Seller's Economic Curtailment, or (v) Buyer's failure to perform <br />("Unit Contingent"). <br />3. PAYMENT: <br />3.1 Energy Payment. The Energy Payment due from Buyer to Seller for each hour of <br />the Delivery Period shall be the product of (1) the Contract Price multiplied by (2) the <br />amount of Buyer's Share of the Wind Energy delivered by Seller at the Delivery Point <br />during that hour. <br />The "Contract Price" price from July 1, 2021 — December 31, 2023 shall be <br />$21.75/MWh and from January 1, 2024 --- December 31, 2029 shall be $17.95/MWh. <br />4. DELIVERY: <br />4.1 Deliver Period: Monday through Sunday from hours ending 0100 through 2400 <br />Central Prevailing Time from July 1, 2021 through December 31, 2029, including NERC <br />holidays. The Delivery Period may be extended by the written mutual consent of both <br />Parties in the form of an Amendment to this Confirmation Letter. <br />4.2 Deliver Point: From July 1, 2021 through December 31, 2023 the Delivery <br />Point shall be the ERCOT-SOUTH 345 KV HUB. On and after January 1, 2024 the <br />Delivery Point shall be the ERCOT polled settlement meter at the substation applicable to <br />the ERCOT Unit Code Trent Trent that measures the net output of the Facility, at which <br />point the quantities of such Energy delivered by Seller to Buyer will be recorded and <br />measured by the relevant Transmission Operator's revenue meters. The Delivery Point <br />may be amended by the written mutual consent of both Parties in the form of an <br />NA <br />
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