Submitted By: Tyler Puckett
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Presentation By: Doug Peebles
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Department: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
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Approve the First Amended and Restated Florida Municipal Power Agency All-Requirements Project Solar II Energy Participation Agreement
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
On December 19, 2017, City Council approved a solar generation commitment for 10 megawatts (MW) through a Florida Municipal Power Agency (FMPA) All-Requirements (ARP) Solar I Participants Agreement. Seven MW of that commitment from the Harmony facility have been active since Fiscal Year 2021. Three MW of that original commitment were supposed to come from the Poinsett facility, which was not constructed as planned, and that contract was terminated in December 2022.
On July 16, 2019, City Council committed to receiving an additional 20 MW of generation from the Rice Creek and Whistling Duck projects, projected to be active December 31, 2023.
In April 2024, amendments to the Whistling Duck facility were requested by the developer, Origis, due to regulation, inflation, interconnection, and market concerns. As a result, eight of the twelve Whistling Duck participants (~41.6MW) will exit the project.
FINDINGS AND CONCLUSIONS:
Ocala has elected to withdraw the 10 MW commitment from the Whistling Duck facility due to escalating costs and postponed commercial operation dates.
The proposed First Amended and Restated ARP Solar II Energy Participation Agreement reallocates the removed parties’ solar shares via the attached Rate Schedule B-1.
FISCAL IMPACT:
N/A
PROCUREMENT REVIEW:
This Agreement has been reviewed in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny