Sec. 23.137. Contract Authority of the General Manager of the Department of Water and Power for Specified Power Contracts.

er to enter into any contract to invest in cost effective energy efficiency projects for customers, including any contract to finance such a project with Department funds so long as the Department’s Chief Accounting Employee concludes that the contracts satisfy the conditions of this Section 23.137. These contracts may be granted only if that customer has signed a long term contract for generation with (i) the Department; (ii) the Department recovers the principal amount of payments it makes plus accrued interest over a period not to exceed seven years from the date of execution of the long term contract or the term of the contract less 1 year, whichever is shorter; (iii) the total investment does not exceed one year of the total contract revenues from that customer; (iv) the interest rates to be charged will be at or above the Department of Water and Power’s cost of funds; (v) sufficient tangible collateral, credit ratings and/or approved bank letters of credit shall be provided by the customer to fully protect the amount of the DWP investment; and (vi) the Department shall not use funds which are planned for debt reduction. This authorization does not limit the existing authority of the Board of Water and Power Commissioners and the General Manager to continue energy efficiency programs subject to Commission and Council approval. (6) The Department of Water and Power’s Chief Accounting Employee must certify that each contract conforms with the provisions of this Ordinance. Each contract will be reviewed, on a quarterly basis, by the Chief Accounting Employee and an independent auditing firm approved by the City Council to assure the contract complies with the authority granted to the General Manager of the Department of Water and Power. (7) Each contract as provided in this section shall be subject to quarterly reports from the General Manager of the Department of Water and Power to the Board of Water and Power Commissioners and to the City Council and the Mayor. The report shall identify and enumerate all contracts entered into pursuant to the authorization, provide the essential provisions of the contracts, certify that the conditions of this contract authority have been fully complied with and evaluate the financial impact on the DWP Action Plan of any discounts which have been provided under the terms of this ordinance. (b) Delegation.