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Spring City council approves 25-year purchase agreement to buy power from proposed 99 MW solar-plus-battery project
Summary
The council voted to join a multi-city power purchase agreement for a 99 MW DC solar project with battery storage and a 25-year term; the resolution passed unanimously. Staff said the offering would help replace expiring wind power contracts and lock a blended price around 6.97¢/kWh.
Spring City’s council voted to approve Resolution 2025-09 to participate in a proposed 99-megawatt DC solar project with battery storage, authorizing the mayor to approve related transaction schedules.
The move commits the city to buy output from the solar-plus-storage plant under a 25-year purchase agreement once the project reaches commercial operation (staff said a target commercial operating date is late 2027). City power staff presented price options and operational features and told the council the offering would help replace power the city currently receives under expiring wind agreements.
City power staff said the project’s daytime delivered cost would be about 3.5¢ per kilowatt-hour when the solar array is generating; battery-backed night delivery would be about 13.5¢/kWh when discharging. Staff presented a blended-day/night price in the mid-6¢/kWh range (roughly 6.97¢/kWh) as the comparison metric the city would lock for most of the 25-year term. The project includes on-site battery storage to supply power when the array is not producing, and staff said participating municipalities also plan to establish a scholarship funded by project proceeds (staff described a $10,000-per-year scholarship available to participating cities’ residents).
Staff described contractual protections: the developer requires a full-subscription threshold before proceeding, and project schedules include execution windows and off-ramps if milestones are not met. Councilmembers asked about subscription risk and about escalation clauses and credits; staff said subscription shortfalls would cause the developer to downsized or terminate construction if minimum commitments are not met, and that the contract includes performance and delay terms.
Why it matters: Spring City’s prior wind power purchase agreements will end in 2027–2028, staff said, leaving a gap in long-term contracted supply. The solar-plus-storage option is intended to fill part of that supply gap while providing a relatively stable price profile compared with recent market volatility.
Council action: Councilmember Ken Crook moved to adopt the resolution and authorize the mayor to sign related transaction schedules; the motion was seconded and approved by the council. The meeting record shows all council members voting in favor.
The city will return final transaction schedules and the executed resolution to the council as staff completes the subscription paperwork and the developer confirms the full-subscription status.
