Board approves 15‑year resource adequacy and TB‑4 hedge agreement for Atlas storage project

San Diego Community Power’s board approved a 15‑year resource adequacy (RA) agreement paired with a TB‑4 hedge for a 200‑megawatt portion of the Atlas storage project on March 27, 2025.

Andrea Torres, associate director of origination, presented the item and described the Atlas storage project as a standalone four‑hour battery being developed as part of a larger 402‑megawatt facility near Desert Center in Riverside County and co‑located with a 450‑megawatt photovoltaic plant. The contract covers a 200‑megawatt RA portion of the facility and pairs the RA product with a TB‑4 hedge structure designed to capture energy arbitrage across the top and bottom four hours of the day in the day‑ahead market.

Torres said the project originally entered SDCP’s 2023 solicitation, was awarded deliverability, and moved into negotiations after award. She described guaranteed milestones, liquidated damages for missed milestones, and ongoing performance guarantees, including an RA delivery guarantee over the contract life. The project’s guaranteed commercial operation date is currently targeted for early 2027.

Torres said the developer (described in materials as founded in 2019 and backed by major investors) is experienced with utility‑scale solar and storage and has committed to a project labor agreement for construction, an estimated 50 clean‑energy construction jobs, and a $200,000 community benefits contribution payable within 60 days of execution.

The board voted to authorize the CEO to execute the agreement in substantially final form; the motion passed by roll call.