San Diego Community Power on May 2025 approved an amendment to its power purchase agreement for a large solar‑plus‑storage project (referred to in the meeting as the Noble project) to accommodate schedule risks the presenter said were outside the developer’s control while adding protections for ratepayers.

Kenny Key, director of power contracts, told the board the developer requested a change to the guaranteed commercial operation date because of two primary delays: network upgrade schedules for interconnection had moved later in the regional queue and a pause in Bureau of Land Management (BLM) permitting. Key said the amendment moves the COD by about one year to allow for those external delays.

Why it matters: the project represents a large capacity addition to the agency’s long‑term portfolio. Because the agency is the sole offtaker, staff said the board needed to balance keeping the project viable with protecting ratepayer interests if the project does not reach COD.

What the amendment does

- COD and reasons: The amendment shifts the original COD (recorded in the contract as June 27) to a later date (a one‑year modification was described), reflecting interconnection network upgrades that were delayed and an active pause in BLM permitting.

- Increased developer security: To protect ratepayers, staff said they negotiated a higher development security amount (letters of credit or cash) and increased the pre‑commercial operations liability cap so that the agency would be better compensated if the project ultimately failed to reach COD.

- Community benefits timing: Staff said the developer had previously committed $2 million to community benefits; as part of the amendment the developer agreed to accelerate payment timing so that $1 million becomes payable at the end of year 1 and another $1 million at the end of year 3 of the contract term if the project reaches specified milestones.

Board action and comment

The board voted to approve the amended and restated PPA for the project. Directors commented on the job creation and labor agreements tied to the project; one director asked for a closed‑session briefing on the portfolio risk and protections.

Background and context

Key emphasized that the agency’s finance and legal teams reviewed the amendment and that staff sought to preserve the original price while adding additional security. He said this amendment did not ask the board to accept a price increase but addressed timing and added contractual protections to mitigate portfolio risk associated with a large single project.

Next steps

Staff will finalize and execute the amended contract and continue to monitor permitting and interconnection milestones. The board asked staff to provide additional risk‑management materials to directors, including further detail on letters of credit and how damages would be accessed in worst‑case scenarios.