Item Description:
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Neg Agmt PR00006149 with ACES to sell the electricity from HERC into wholesale electricity market, 04/15/24-12/31/33, NTE $1,500,000
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Agreement PR00006149 with Alliance for Cooperative Energy Services Power Marketing (ACES) to offer the electrical output of the Hennepin Energy Recovery Center (HERC) into the Midcontinent Independent System Operators (MISO) market and to enter Hennepin Energy Recovery Center's (HERC) electrical energy capacity into MISO capacity auctions from April 15, 2024 through December 31, 2033, with a not-to-exceed amount of $1,500,000, be approved; and that following review and approval of the County Attorney's Office, the County Administrator be authorized to sign the Agreement on behalf of the county, and that the Controller be authorized to disburse funds as directed.
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Background:
The county owns and operates the HERC, which processes approximately 365,000 tons of trash each year. From the trash, HERC recovers metals and energy in the form of electricity and steam. HERC has produced enough electricity to power 25,000 homes for 34 years and has recovered 350,000 tons of metal. Selling HERC's electricity provides revenues for the county's natural resources and forestry programming, as well as waste reduction and recycling initiatives.
The county contracts for various services related to operate the HERC, including selling electricity. Currently, electricity generated by HERC is sold to Xcel Energy pursuant to a Power Purchase Agreement (PPA) executed in 1986. The PPA is scheduled to terminate on December 31, 2024.
To allow for continuity of service and operations, this contract will replace the expiring PPA. Starting January 1, 2025, the county will sell HERC's electrical output into the wholesale electricity market instead of selling directly to Xcel Energy. This wholesale market is functionally controlled an...
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