Willow Rock Long Duration Energy Storage Agreement.

The City Council is asked to authorize the Director of the Energy Department to negotiate and execute two agreements related to the Willow Rock Long Duration Energy Storage Agreement. This project involves procuring a share of an advanced compressed air energy storage system (A-CAES) developed by GEM A-CAES LLC, an affiliate of Hydrostor Inc. The agreements will allow San José Clean Energy (SJCE) to procure this storage capacity for 20 years, from 2030 through 2050, at an annual cost not to exceed $3,960,000, for an aggregate total not exceeding $79,200,000. This project is SJCE's fifth power project offtake agreement procured through California Community Power (CC Power), a joint powers authority. The Willow Rock project will help SJCE meet its Resource Adequacy requirements mandated by the California Public Utilities Commission (CPUC), diversify its energy storage technology portfolio, and reduce the risk of high energy costs, particularly during summer peak hours. The technology stores energy by compressing air, capturing heat, and releasing it to drive a turbine, with a low-risk profile using only air and water. The project is expected to create significant construction and permanent jobs in Kern County, California.