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Board hears GRID Alternatives plan for community solar on district land; lease discussion focuses on access, workforce and low‑income subscriptions
Summary
A 7.5-acre, phase‑one community solar project proposed by GRID Alternatives would produce roughly 3 GWh annually and offer discounts to low-income Black Hills customers; board members asked about subscription allocation, site access, decommissioning and ensuring Pueblo West residents benefit.
The board received a presentation and discussion April 28 on a proposed community solar lease with GRID Alternatives for a 7.5‑acre portion of district land near McCulloch Boulevard and Highway 50.
GRID Alternatives and district staff described a phased project where Phase 1 would cover about 6.5 acres with a roughly 1.5 megawatt array mounted on single-axis trackers. Presenters estimated annual generation near 3 gigawatt‑hours and modeled subscriber savings in the 20–30% range for low‑income households served by Black Hills Energy. GRID Alternatives said the site would be in the Black Hills service territory and that subscriptions would be allocated to customers eligible for energy assistance programs such as LIHEAP/Black Hills’ program; staff and GRID acknowledged that the precise allocation rules (first-come/first-served or prioritized local subscriptions) rest with the utility’s enrollment process.
The draft lease discussed today covers only Phase 1 (7.5 acres) and contemplates a 20‑year term with a construction-term rent and a small annual operating rent with an escalator. Staff presented a construction-term rent of $3,000 and an annual operating rent schedule beginning at $52.50 in the early operating years and escalating in later years (the packet contains the detailed rent table). GRID Alternatives said it expects to begin construction in 2026 after final engineering and permitting; construction is expected to need about 20–30 flatbed deliveries and roughly five gravel truck trips for road work. GRID said they would pursue federal grant funding that could require American-manufactured equipment and Davis‑Bacon prevailing-wage requirements for construction.
Board members pressed on two issues: ensuring Pueblo West residents get priority access to subscription savings, and decommissioning requirements for below‑grade racking elements. GRID said state law restricts community solar subscriptions to customers within the utility service territory and the county or adjacent counties; the panel said the subscriber list will be in the Black Hills service area and that GRID will coordinate with Black Hills on enrollment priorities but cannot unilaterally promise 100% Pueblo West allocation. On the decommissioning question, GRID described driven-pile racking (I‑ or C‑beams) rather than deep poured footings and agreed to consider lease language requiring removal of above‑ground structures and to review options for removing or marking subsurface piles to avoid future conflicts.
Ending: Staff said the packet included a draft lease and resolution and that the board could move the item to action at a later meeting. The board asked staff to clarify allocation mechanics with Black Hills and to include stronger decommissioning language before any final lease approval.
