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Community Power approves 10‑year resource‑adequacy swap with San José to meet compliance obligations
Summary
The board approved a decade‑long swap with the City of San José in which Community Power will sell certain MTR‑eligible four‑hour battery RA attributes and buy system (24/7) RA; staff said the net notional is about $4.5 million and described protections for shortfalls.
San Diego Community Power’s Board of Directors on April 23 approved a 10‑year agreement with the City of San José to exchange resource‑adequacy (RA) attributes intended to help both agencies meet state compliance obligations.
Kenny Key, Director of Power Contracts, presented the transaction as a portfolio swap: Community Power will sell MTR‑eligible four‑hour battery RA from a project coming online this year and in return buy system (24/7) RA from San José. The staff presentation described the deal as a way to convert four‑hour capacity attributes into round‑the‑clock RA counts that better match compliance needs. "If you're going to make that compliance obligation, the project has to be online by June 1st of that calendar year. So it's nearly impossible," Key said, explaining why the swap was offered to address timing and deliverability constraints.
Staff characterized the commercial terms as a net notional of $4.5 million and said the transaction includes fixed annual deliveries for 10 years plus contractual protections against shortfalls. Key described the transaction as a portfolio optimization that lets Community Power monetize MTR‑eligible attributes it cannot otherwise use while buying more deliverable 24/7 RA for compliance.
The Board moved and approved the standard agreements on a unanimous roll call. There was no public comment on the item. Staff said the swap reduces near‑term procurement risk and helps balance projected obligations across the agency’s portfolio; staff will include the agreements in procurement records and contract management.
