Memorandum
City of Lawrence
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TO: |
Brandon McGuire, Assistant to the City Manager |
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FROM: |
Jasmin Moore, Sustainability Director for Lawrence and Douglas County |
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CC: |
Diane Stoddard, Assistant City Manager |
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DATE: |
January 9, 2018 |
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RE: |
Westar Wind Opportunity and City of Lawrence Energy Assessment Timeline of events |
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July 31, 2018
Westar Energy (Westar) contacted the City of Lawrence Sustainability Director, as a customer with large peak demand, to purchase renewable energy via a Direct Renewable Participation Service Agreement (the “Agreement”). This agreement stems from the Kansas Corporation Commission’s approval of Westar’s renewable energy in July 2018. The Agreement allows customers with large peak demand to purchase blocks of renewable energy (200 MW available) generated from Soldier Creek Wind Farm at a fixed fuel charge (Retail Energy Cost Adjustment Surcharge) of $0.018 per kWh for a 20-year term, beginning in 2020 when the wind farm is fully operational. The Agreement was offered on a first come, first served basis.
August 1, 2018
Sustainability Director responded to Westar and began analysis of the opportunity.
August 20- 22, 2018
Sustainability Director provided a summary of the opportunity to Assistant City Manager and Building and Structures Manager. It was decided to bring more voices to the discussion and schedule as an item on an upcoming Executive Team agenda.
September 12, 2018
The issue was discussed for the first time by the City Manager and Executive Team. Staff then began evaluating the offer for legal considerations as well as cost-benefit analysis. Given the complex nature of the City’s large energy portfolio, diverse facility mix, changing infrastructure, and potential long-term financial implications to the City, thorough analysis was needed before an informed recommendation could be made to the City Commission regarding this 20-year fixed rate agreement.
September 18, 2018
Westar communicated that interest in their offering of 200 MW had been exceeded and their customers who expressed initial interest had until October 12, 2018 to sign and return the Agreement. Westar stated that any remaining wind energy capacity after October 12 would be offered to customers in the order they received signed Agreements until the 200 MW was fully committed.
September 21, 2018
Municipal Services & Operations (MSO) and Sustainability staff began discussing data and analysis needs for a cost-benefit analysis.
September 25, 2018
Legal review of the Agreement drafted by Westar was completed by the City Attorney’s Office and outside legal counsel. Recommended revisions to the agreement were provided to the staff team working on this issue.
September 25, 2018
Staff from Sustainability and MSO met to discuss the opportunity and outstanding questions. Determined MSO would take the lead on continued technical analysis. MSO staff initiated contact with Black & Veatch to develop a scope of work for the cost-benefit analysis. This work was incorporated into an ongoing energy assessment being conducted by Black & Veatch.
October 2, 2018
The City Manager received an email from member of the Sustainability Advisory Board encouraging the City to sign Westar’s agreement.
October 3, 2018
First response from Black & Veatch was received regarding the scope of work to review energy usage of city facilities to better understand the implications of the proposed Agreement and similar offering in the future.
November 2, 2018
Staff was informed by Westar that there was still energy available (via phone).
November 8, 2018
The scope of work was finalized with Black & Veatch and staff provided notice to proceed.
January 7, 2019
Black and Veatch project team requests energy data for analysis.
January 11, 2019
Westar confirmed all 200 MW of wind energy is committed and no additional capacity is available at this time.
January 15, 2019
A progress meeting with the staff project team for the ongoing energy assessment is scheduled for January 15th to discuss preliminary findings.