Harrisonburg City Council approves electric utility lease and battery storage agreements

During the recent Harrisonburg City Council meeting held on July 8, 2025, significant discussions centered around a proposed lease agreement and resolutions related to the Harrisonburg Electric Commission (HEC). The council's deliberations highlighted the city's strategic approach to managing its electric infrastructure and energy resources.

One of the key topics was the approval of a lease for city property located at 2230 Ramblewood Road. Vice Mayor Fleming emphasized the financial benefits of the lease, which is set at a nominal rate of one dollar. This arrangement is projected to save the city approximately $1.5 million annually, funds that can be redirected towards enhancing the city's electric infrastructure. The council unanimously approved the motion, reflecting a strong consensus on the importance of this financial strategy.

In addition to the lease, the council also discussed a resolution authorizing HEC to enter into a battery energy storage system output purchase agreement and an interconnection agreement. This agreement is significant as it extends for more than ten years, positioning Harrisonburg as a leader in energy innovation among its peers. Notably, HEC operates independently compared to other electric utilities in the Virginia Municipal Electric Association (VMEA), necessitating this specific council approval.

The council's decisions are poised to have a lasting impact on the city's energy management and sustainability efforts. By investing in battery storage technology and securing favorable lease terms, Harrisonburg is taking proactive steps to enhance its electric infrastructure while also ensuring financial prudence.

As the meeting concluded, the council members expressed optimism about the agreements, with hopes that other involved parties would finalize their commitments soon. The discussions underscored the council's commitment to fostering a resilient and forward-thinking energy framework for the community.