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The City of Roseville, Calif., has signed a power purchase agreement (PPA) with developer First Solar Inc. for the 32 MW Lost Hills project, to be located in Kern County, Calif.

First Solar says the 10-year PPA is its first such agreement with a municipal utility. The PPA was approved by the Roseville City Council on July 17 and goes into effect in 2015.

"We are pleased to acquire renewable electricity to help us reach the state's requirement for 33 percent by 2020," says Roseville Electric Utility Director Michelle Bertolino. "As a community-owned utility, contracts such as this help minimize the cost impact on our customers while maintaining highly reliable service."

First Solar had previously signed a PPA with Pacific Gas and Electric (PG&E) for the output from the Lost Hills plant that goes into effect in 2019. The new deal with Roseville represents 325,000 MWh of electricity for $24 million over the 10 years. Under the agreement, Roseville will receive 100% of the Lost Hills power plant’s output for the first four years, after which the percentage will decline. PG&E will then pick up the remaining percentage.

Construction on the Lost Hills project is expected to start in 2014.

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