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Shelby hears update on 10 MW battery project; council approves AMP hydro assignment resolution
Summary
Staff said a 10‑megawatt battery energy storage system (BESS) is planned to reduce transmission and capacity charges and estimated savings over a 15‑year term. Council also passed a resolution to assign ownership shares in two hydro resources, reducing the city's debt exposure, city staff said.
Shelby City Council received an update on a planned 10‑megawatt battery energy storage system and voted to authorize an assignment of municipal power sales contracts that staff said will reduce the city’s outstanding debt.
A utilities department staff member briefed council on the battery project, describing it as a 10 MW system designed to “mitigate transmission and capacity charges.” The staff presentation estimated savings of about $12 million over a 15‑year term; the project is expected to be in service in late first quarter of the coming year.
On a separate but related energy item, council passed Resolution No. 52‑2024, authorizing the mayor to sign documents to assign Greenup Hydro (366 kW) and Melancon Hydro (559 kW) ownership shares and associated power‑sales contracts to another municipal customer, city staff said. Utilities staff told council that assigning those contracted resources would reduce Shelby’s outstanding debt by about $4.59 million and would allow the city additional flexibility, including room to install an extra 1 megawatt of behind‑the‑meter solar.
Council discussion included remarks that the long‑term contracts had been burdensome for Shelby’s load profile and that reassignment could improve the city’s ability to manage local rates. A council member thanked staff and colleagues for negotiating the agreement and said it should help manage rising power costs for residents.
Council voted to pass Resolution No. 52‑2024. City staff said further contract documents and administrative steps will follow to complete the assignment.
