Sunday, 07 July 2024

County negotiates money-saving power purchase agreement

LAKEPORT, Calif. – The county of Lake is in negotiations with the agency that holds the main water rights to Clear Lake and Indian Valley Reservoir for a power purchase agreement that will save on the county’s annual power purchase costs.

Lake County Special Districts Administrator Jan Coppinger brought the proposal from Yolo County Flood Control and Water Conservation District to the Board of Supervisors at its June 20 meeting.

Coppinger said she has been discussing the idea with Yolo Flood Assistant General Manager Max Stevenson, who also appeared later at the meeting.

She said Yolo Flood is proposing to sell the county power from its hydroelectric plant at Indian Valley Reservoir at a discounted rate. “They are generating more power than they can use.”

Under a new Pacific Gas and Electric Co. program, Coppinger said Yolo Flood can assign that surplus power, with the only stipulation that it be used in the county where it’s generated.

Yolo Flood has proposed a 5-percent discount, while Coppinger said she is seeking 10 percent. She said she hopes they will get somewhere in the middle, at about 8 percent. 

At an 8-percent discount, Coppinger said the county could save $100,000 a year.

Special Districts has 120 power meters across the county, paying almost $2 million for power annually, Coppinger said.

Coppinger said that the proposed agreement would allow the county to add up to 50 power meters to the agreement. For each of those meters, a $30 fee would be paid to PG&E for the changeover.

The power is generated – primarily during the spring, when water levels are high – and then the credit is banked, she said

Coppinger said the analysis showed that Special Districts’ 10 largest meters would benefit, with other larger county meters to be considered.

During the discussion, Supervisor Rob Brown wanted to know if they could add meters from other local entities, including the cities of Clearlake and Lakeport, fire agencies, schools and senior centers.

While Coppinger had initially indicated at the meeting that it was her understanding that opening up the offer to other agencies was a possibility, when Stevenson arrived it was explained that Lake County alone would use up all of the available power.

Supervisor Tina Scott asked if meters could be moved around if they don’t work out. Stevenson confirmed that, on an annual basis, the county could choose to add or subtract meters.

In a year where Indian Valley Reservoir is low, meters can be subtracted, with more added to maximize the benefit in big water years, he explained.

“There’s almost no downside,” other than a little extra work for administrative staff, said Stevenson. He said there won’t be the need for meetings as the agreement doesn’t include the creation of a joint powers agreement.

Stevenson said he would be the contact on the Yolo Flood side for the agreement, while Coppinger would be the representative on the county’s side.

Board Chair Jeff Smith said the agreement sounded like a win-win, and Brown thanked them for presenting the proposal before the board voted unanimously to have staff move forward with negotiating the agreement with Yolo Flood.

Stevenson said Yolo Flood had passed a resolution giving General Manager Tim O’Halloran power to negotiate the four-page agreement, a draft of which was given to Coppinger.

He said the district wanted to get the agreement moving forward to take advantage of this summer’s power-generating water releases, noting it would take PG&E some time to get set up.

A final version of the joint powers agreement will be brought back to the board for final approval.

Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.

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