CLARK COUNTY Water Reclamation District
Board of Trustees
AGENDA ITEM
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Petitioner: |
Thomas A. Minwegen, General Manager |
Recommendation:
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Approve and authorize the General Manager to sign Amendment No. 1 to the First Amended and Restated Interlocal Agreement with the Southern Nevada Water Authority (SNWA), to increase the price of all delivered renewable energy sold to the District to the new rate of $38.15/MWh; or take other action as appropriate. (For possible action)
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FISCAL IMPACT:
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Fund #: |
N/A |
Fund Name: |
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Fund Center: |
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Funded PGM/Grant: |
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Description: |
Amendment No. 1 to the First Amended Interlocal Agreement with SNWA |
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Additional Comments: |
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BACKGROUND:
The Colorado River Commission of Nevada (CRC) is authorized under Nevada Revised Statutes (NRS)
538.161.2 and NRS 704.787 to supply electric power for the water and wastewater operations of the Southern Nevada Water Authority (SNWA) and its member agencies. The Clark County Water Reclamation District (District) is a member agency of SNWA. CRC and SNWA are parties to a Power Supply Agreement pursuant to which CRC provides a reliable and cost-effective means of meeting a portion of the energy supply needs of SNWA and any participating agency. The District is a participating agency via an Interlocal Agreement, effective September 15, 2011.
On April 15, 2021, SNWA and Boulder Flats Solar, LLC (“BFS”) entered into a Solar Energy Power Purchase Agreement, amended by Amendment No. 1 on November 18, 2021 (collectively, the “PPA”), pursuant to which SNWA will buy power from the Boulder Flats Solar Photovoltaic Generating Facility for 25 years. That facility has an expected total maximum power output of approximately 113 megawatts (alternating current) annually.
On March 15, 2022, the Board of Trustees approved the First Amended and Restated Interlocal Agreement to enable SNWA to sell to the District 9,000 kilowatts (kW) of that renewable resource at a rate of $30.49/MWh for the District’s wastewater operations.
Since then, project costs have significantly increased for the developer. If approved, Amendment No. 1 to the First Amended and Restated Interlocal Agreement will increase the rate to $38.15/MWh of all delivered renewable energy sold by SNWA to the District, which reflects a pass- through of the price increase paid by SNWA. All other terms of the First Amended and Restated Interlocal Agreement remain the same.
This agenda item has been reviewed and approved by the District General Counsel.