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Anaheim OKs two wind power purchase agreements totaling 78 MW; annual bundled price cited at $18.5M
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Summary
The council approved two wind power purchase agreements for facilities near Tehachapi, described by Anaheim Public Utilities staff as 78 megawatts together and an $18.5 million annual bundled price; staff said the deals help replace coal and support the city's renewable goals while containing cost offsets.
Anaheim Public Utilities staff presented two power purchase agreements for wind energy located near Tehachapi, California, that together can supply about 78 megawatts and represent roughly 15% of the city's peak summer demand, staff said.
APU staff explained the pricing: $18,500,000 per year for energy, renewable attributes and capacity, but with wholesale market offsets the net annual cost was estimated at about $11,800,000. Staff said the agreements help meet state renewable‑energy goals while maintaining reliability and that Anaheim only pays for delivered energy when the wind is producing.
The council discussed rate impacts, procurement strategy and whether to pursue ownership stakes or battery storage; staff said the agreements are part of a larger $300 million power‑supply portfolio and that the new resource displaces coal purchases. Council approved the agreements 7‑0.
Representative quote: APU staff said, "78 megawatts is about 15% of our peak demand during a hot summer day," and described the commercial rationale for bundling energy, attributes and capacity.
What happens next: Staff will finalize contracts and integrate the resource into Anaheim Public Utilities' supply portfolio, continuing to balance affordability and clean energy targets.
