HomeMy WebLinkAboutSRCEA Item 5 - SR re Escrow Agmt (2)Southwest Riverside County Energy Authority
a Joint Powers Authority of the Cities of Temecula and Lake Elsinore, California
REPORT TO SRCEA BOARD
To: Honorable Chair and Members of the Board
From: Michael Bracken, Staff Liaison to the SRCEA JPA Board
Date: February 14, 2018
Subject: Escrow Agreement for the Replacement of Certain Power Purchase
Agreement (and other) Documents
Recommendation
adopt A RESOLUTION OF THE SOUTHWEST RIVERSIDE COUNTY ENERGY AUTHORITY
(SRCEA) AUTHORIZING EXECUTION OF AN ESCROW AGREEMENT FOR THE
REPLACEMENT OF CERTAIN POWER PURCHASE AGREEMENT (AND OTHER)
DOCUMENTS
Background and Overview
Prior to the creation of the Southwest Riverside County Energy Authority (SRCEA), the City of
Temecula entered into a Power Purchase Agreement (and ancillary documents) for the purchase
of approximately 2.25 MW of power from SMER Research 1, LLC. Those documents were fully
executed and used by the project developer to obtain financing and acquire what is commonly
known as a "financial close".
Subsequently, the Cities of Temecula and Lake Elsinore have worked to create the Southwest
Riverside County Energy Authority (SRCEA) and individually (through their city) and jointly
(through the JPA) Power Purchase Agreements (and ancillary documents) that are different and
distinct from the previous Agreements that the City of Temecula entered into.
Essentially, the new Power Purchase Agreement(s) will replace the one that Temecula entered
into individually. The Escrow Agreement (attached) is designed as the mechanism to replace the
original agreement (City of Temecula) with the new agreement (through the Southwest Riverside
County Energy Authority).
Fiscal Impact
Adoption of a Resolution approving the authorizing of the Escrow Agreement does not create any
Fiscal Impact beyond those already called for in the individual Power Purchase Agreements.
Exhibit(s)
A – Resolution No. 2018-___
B – Escrow Instructions (SMER Research 1, LLC / City of Temecula / Southwest Riverside County
Energy Authority)