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A resolution approving Tranche Amendment 2 between the Tennessee Valley Authority, Nashville Electric Service, and the Metropolitan Government of Nashville and Davidson County, for the purchase of renewable energy.
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WHEREAS, Resolution No. RS2020-441 approved a “Green Invest Agreement” between the Tennessee Valley Authority (“TVA”), Nashville Electric Service (“NES”), and the Metropolitan Government of Nashville and Davidson County (“Metro”), for the potential purchase of renewable energy; and,
WHEREAS, Resolution No. RS2020-634 approved Tranche Amendment 1 for the purchase of renewable energy at the price of $1.25 per Renewable Energy Certificate or REC; and,
WHEREAS, Resolution No. RS2023-2360 previously approved Tranche Amendment 2 which amended the Renewable Energy Certificate price to $3.08, however, that amendment was not executed by TVA; and,
WHEREAS, the parties wish to enter into a new Tranche Amendment 2 with the same terms except that the Expected Initiated Delivery Date would be April 30, 2027. This new Tranche Amendment 2 would replace the Tranche Amendment 2 previously approved by RS2023-2360; and,
WHEREAS, it is to the benefit of the citizens of The Metropolitan Government of Nashville and Davidson County that Tranche Amendment 2 be approved for Metro to pursue timely compliance with its near and long-term Renewable Portfolio Standard benchmarks laid out in the Metropolitan Code of Law Section 2.32.080.
NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That Tranche Amendment 2, attached hereto and incorporated herein, is hereby approved, and the Director of the Metropolitan Department of Finance is authorized to execute the same.
Section 2. Any further amendments, renewals, or extension of the terms of Tranche Amendment 2 may be approved by resolution of the Metropolitan Council.
Section 3. That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution approves the second Tranche Amendment between the Tennessee Valley Authority (“TVA”), Nashville Electric Service, and the Metropolitan Government (“Metro”) for the purchase of renewable energy.
Through Resolution No. RS2020-441, the Metropolitan Council approved a “Green Invest Agreement” among the parties for the potential purchase of renewable energy. The Council later approved Tranche Amendment 1 through Resolution No. RS2020-634, which allowed Metro to purchase Renewable Energy Certificates (“REC”) for the price of $1.25 per megawatt-hour for each unit of product.
The Council also passed Tranche Amendment 2 through Resolution No. RS2023-2360, which amended the REC price to $3.08 per megawatt hour. However, TVA did not execute the amendment.
The proposed resolution would approve Tranche Amendment 2 and replace Tranche Amendment 1. Through this Tranche Amendment, Metro will purchase REC for the price of $3.08 per megawatt-hour for each unit of product. Metro would begin purchasing these RECs when the planned solar array is online, which is expected to be April 30, 2027. The planned solar array would produce 200 megawatts, and Metro would purchase 20 percent of that facility’s total renewable energy generation, or 40 megawatts. The delivery period for this Tranche Amendment is 20 years.
Any further amendments, renewals, or extension of the terms of Tranche Amendment 2 may be approved by resolution of the Metropolitan Council.