|Resolution - Lubbock Power & Light: Consider a resolution authorizing the Mayor of the City of Lubbock to execute the Third Amendment to Power Purchase Agreement, by and between the Texas Tech University System, acting by and through its Board of Regents ("TTU") and the City of Lubbock, acting by and through Lubbock Power & Light ("LP&L"), amending the Power Purchase Agreement, by and between TTU and LP&L, dated April 28, 2005, amending the term and clarifying the price adjustment for electric service to be provided under the original Power Purchase Agreement, as amended by the First Amendment and Second Amendment to Power Purchase Agreement.
|On April 28, 2005, TTU and LP&L entered into that certain Power Purchase Agreement ("PPA") whereby LP&L agreed to sell, and TTU agreed to purchase, power upon the terms and conditions provided therein.
The PPA, as amended by the First Amendment, provides that the price set forth therein recognizes that the statutory twenty percent (20%) discount provided by Section 36.351 of the Texas Utility Code ("Statutory Discount") is included within the price provided by the PPA. If the PPA is terminated, TTU would become a tariff customer of LP&L, and would be entitled to the Statutory Discount.
The PPA, as amended by the Second Amendment, provided (i) a decreased energy price, from 1.4 cents per kWh to 1.215 cents per kWh, in recognition of the Statutory Discount; and (ii) to extend the term thereof to May 31, 2021, with twelve (12) successive thirty (30) day renewal periods ("Extended Term"), unless either party terminates such by notice provided five (5) days prior to the expiration of the applicable period. The term provided, recognized LP&L's expectation that it would be opted-in to the competitive retail choice market in the Electric Reliability Council of Texas ("ERCOT") by May 31, 2021.
This Third Amendment to the Power Purchase Agreement, is entered into and effective the 1st day of August, 2021 and the term of this Agreement shall be effective from July 1, 2004 and shall remain in full force and effect until May 31, 2023 ("Initial Term"). This Agreement shall continue after the Initial Term for up to twelve (12) successive thirty (30) day periods (any and all of which comprise the "Extended Term"), unless either party hereto shall provide notice of termination to the other Party at least five (5) days prior to the expiration of the Initial Term or the then effective thirty (30) day period of the Extended Term, as applicable. Notwithstanding this paragraph, should LP&L, acting by and through its City Council and Electric Utility Board, institute customer choice for its retail service area pursuant to Texas Utilities Code Chapter 40 prior to the end of the Initial Term, this Agreement will terminate at the expiration of thirty (30) days after LP&L customers have the right of customer choice.
The Wholesale Power bills section of the Agreement will be revised to include LP&L's current delivery points of SPS and ERCOT, resulting from LP&L's integration with ERCOT. The "Total Bill" meaning is revised as well to include all LP&L's capacity and energy requirements for both SPP and ERCOT. LP&L's current capacity and energy supply requirements are met through a series of power supply resources, which change over time, but may include, and are not limited to, purchase power agreements, energy blocks, congestion revenue rights, and other structures needed to procure energy in ERCOT or the Southwest Power Pool, as applicable.