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HomeMy WebLinkAboutMemo - Mail Packet - 10/10/2023 - Memorandum From Nick Combs, John Phelan, And Josh Birks Re: Platte River Power Authority (Prpa) Power Plant AnnouncementDocuSign Envelope ID: E82C3F13-1E83-4149-A12A-503DFA463C7E MEMORANDUM Date: 10/5/2023 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Kendall Minor, Utilities Executive Director Gretchen Stanford, Utilities Deputy Director Phillip Amaya, Light & Power Director Lance Smith, Utilities Finance Director From: Nick Combs, Utilities Communications & Marketing Manager John Phelan, Energy Services Manager & Policy Advisor Josh Birks, Deputy Sustainability Director Subject: Platte River Power Authority Power Plant Announcement Utilities electric – stormwater – wastewater - water PO Box 580, Fort Collins, CO 80522 970-212.2900 V/TDD: 711 utilities@fcgov.com fcgov.com/utilities Platte River Power Authority (PRPA) announced plans at their September 28th board meeting to build a new gas-fired power plant at the Rawhide Energy Station. Utilities Executive Director Kendall Minor and Mayor Jeni Arndt serve on the board of PRPA. PRPA is expected to bring a formal resolution of support for the power plant project to their board at their October 26th meeting As part of PRPA’s Integrated Resource Plan (IRP) development, they have identified the need for a gas- fired power plant to add to their portfolio. Their desire is to continue to provide safe, cost-effective power in a reliable manner. PRPA and Utilities staff will be attending the October 10th work session to give a full presentation about the IRP and PRPA’s power plant plans. Our key talking points regarding this development are as follows: • Fort Collins is committed to achieving the community goals from Our Climate Future (OCF) of 80% community-wide carbon reduction and 100% renewable electricity by 2030. • Fort Collins recognizes that additional dispatchable resources will be needed to ensure reliability after the closure of all coal-fired power plants at the end of 2029. • Fort Collins is committed to facilitating more local generation and resources that reduce the carbon emissions and overall need for purchased electricity. DocuSign Envelope ID: E82C3F13-1E83-4149-A12A-503DFA463C7E • PRPA’s proposed portfolio is still consistent with Fort Collins achieving its 2030 Our Climate Future goals. • In addition to this new modern gas power plant, PRPA has a confirmed project to add 150 megawatts of solar by early 2025. Beyond 2025, planning continues to add another 150 megawatts of solar in early 2026, 200 megawatts of wind in 2027 and ongoing deployments of battery storage and virtual power plant capacity. This overall expansion of PRPA’s renewable energy portfolio will assist Fort Collins in achieving our OCF goals. • This development of PRPA’s energy portfolio is in line with Fort Collins Utilities rate increase projections and overall philosophy of smooth, predictable rate increases.