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Board of Public Works outlines plan for on-site generators, projects up to $50 million and long-term rate impact
Summary
City presentation and council questions focused on a proposal to subscribe to and help fund on-site generation in Zone 5 to stabilize capacity costs; officials said construction would take years and rate effects depend on multiple variables.
Darren Gordon, director of operations for the Board of Public Works, told the City Council on Aug. 5 that the board is pursuing a two-phase plan to add on-site generation in Zone 5 and that the city is considering subscribing to a portion of that capacity. The board described the project as a multi‑year effort that would not put new charges on ratepayers until generation is online and producing revenue.
The board’s presentation centered on buying a share of a planned generator installation. Gordon said the first phase requires subscriptions to move the project forward; the city’s potential obligation was discussed as part of a broader conversation about long‑term power purchasing and transmission costs. City Attorney James Lemon addressed legal protections for the city if a separate entity constructs and operates the generators.
Why it matters: Council members pressed for specifics because the project could affect utility bills and represents a large, long‑term commitment. Officials said the work is intended to reduce volatility in the city’s…
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