Resolution

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RESOLUTION NO. 12476 
 
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 
MESA, ARIZONA APPROVING AND AUTHORIZING THE 
CITY MANAGER OR HIS DESIGNEE TO ENTER INTO 
POWER PURCHASE AND ENERGY STORAGE AGREEMENT 
WITH THE ARIZONA ELECTRIC POWER COOPERATIVE 
 
Whereas, the City of Mesa (“City”) owns and operates a municipal electric distribution 
utility (“Electric Utility”) and is authorized by the provisions of the Laws of the State of Arizona 
and the Mesa City Charter to acquire, purchase and manage supplies of electric power and energy 
necessary to meet the demands of the residential, commercial, and industrial customers served by 
the Electric Utility. 
 
Whereas, AEPCO, a member owned not for profit electric generation and transmission 
cooperative, is overseeing the development of the Pinal Solar Project in Pinal County, Arizona that 
will be built, owned and operated by NextEra Energy Resources consisting of an interconnected 
renewable solar power generation facility and a battery energy storage facility (“the Project”).  
 
Whereas, the Project is planned to be 400 MW of single-axis tracking photovoltaics paired 
with 400 MW of four-hour battery energy storage system (“BESS”), and is anticipated to be in 
service by the end of 2027. 
 
Whereas, on October 21, 2024, City Council passed and adopted Resolution No. 12280, 
authorizing the City Manager or his designee to enter agreements with AEPCO in the form of a 
Subscription Agreement and Power Purchase Agreement (“PPA”). 
 
Whereas, on March 19, 2025, the City executed the Subscription Agreement with AEPCO 
reserving the right to acquire 25 MW of renewable solar energy and 20 MW of battery storage 
energy from the Project.  
 
Whereas, throughout 2025 the City, AEPCO, and nine other project participants negotiated 
the Power Purchase and Energy Storage Agreement (“PPESA”).  
 
Whereas, on January 14, 2026, the AEPCO Board of Directors approved the PPESA. 
 
Whereas, under the terms of the PPESA, Mesa would acquire 25 MW of renewable solar 
energy currently priced at $29.63/MWh and 20 MW of battery storage energy currently priced at 
$11.65/kilowatt-month for a term of 20 years. 
 
Whereas, the PPESA would be the second lowest price long-term purchase of power in the 
Electric Utility’s power portfolio.  
 
Whereas, the City Council determines it is appropriate to enter into this PPESA as approved 
by the AEPCO Board on January 14, 2026. 
 
Be it resolved by the City Council of the City of Mesa, Arizona, as follows:  
 
Section 1: The City Council approves this PPESA between the City and AEPCO as presented to 
the City Council.

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Section 2: The City Manager or the City Manager’s designee is authorized to execute the PPESA 
on behalf of the City of Mesa and to sign all documents necessary to carry out its provisions; that 
the City Manager or the City Manager’s designee is further authorized to approve amendments, 
modifications, renewals, or extensions of the PPESA or such related documents so long as they do 
not materially alter the terms of the PPESA as presented to City Council or the purpose of the 
PPESA as contemplated in this Resolution.  
 
Section 3: The various City officers and employees are hereby authorized to sign any other 
documents or certificates and to perform all other acts necessary to carry out the intent and purpose 
of this Resolution. 
 
Section 4: The City Clerk is authorized and directed to attest to the signature of the City Manager, 
or the City Manager’s designee, on such documents. 
 
 
Passed and adopted by the City Council of the City of Mesa, Arizona, this 9th day of March, 
2026. 
 
 
 
 
 
 
 
 
APPROVED: 
 
 
 
 
 
 
 
 
 
 
_______________________________ 
 
 
 
 
 
 
 
Mark Freeman, Mayor 
 
ATTEST: 
 
 
 
_________________________________ 
Holly Moseley, City Clerk