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Council signs on to NCPA agreement for Trolley Pass battery-storage project to add capacity without immediate rate impact
Summary
Redding authorized participation through Northern California Power Agency in the Trolley Pass battery energy storage project (45 MW allocation), a 20‑year capacity contract meant to replace expected loss of wind generation and support an eventual paired solar project.
The Redding City Council voted to join a third‑phase agreement with the Northern California Power Agency (NCPA) to acquire up to 45 megawatts (MW) of battery energy storage from the Trolley Pass project in San Bernardino County under a 20‑year capacity contract.
City energy staff said Redding needs replacement resources because the Bighorn Wind contract may terminate early (potentially 2028); the storage contract would provide firm capacity and revenue‑stacking opportunities by charging on midday low prices and discharging during evening peaks. Staff and the consultant described the project as lithium iron phosphate chemistry (a more stable, lower‑fire‑risk chemistry) and said the proposal stands economically even if a companion solar contract is delayed.
Redding’s allocation is part of an NCPA aggregated deal. The city’s preliminary per‑month capacity price was presented as $12.71 per kW‑month (example calculation shown by staff), which staff said would not drive a near‑term residential rate increase when combined with a planned replacement solar purchase and the loss of the Bighorn Wind contract. Staff recommended approving the NCPA third‑phase agreement to secure the project while pricing remains favorable, with NCPA conducting administrative and scheduling duties and with financial protections (developer posting development and performance security).
Council asked staff about timing, contingency planning if Bighorn ends before Trolley is online, and renewable‑credit interactions. Staff said commercial operation date is expected by mid‑2029 and that the city would pursue a solar PPA as a companion, while NCPA’s portfolio and settlement services would help optimize battery dispatch and settlements. Council approved the recommendation to execute the third‑phase agreement.
Staff said the storage contract would increase firm capacity, support renewable‑portfolio compliance when paired with solar, and likely be economically neutral for ratepayers compared with current resource costs.
