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Saint Mary's council advances ordinance to pursue waste-heat power purchase agreement with American Municipal Power
Summary
Council held a first reading of an ordinance to authorize a 15-year purchase power agreement for electricity produced by waste-heat recovery on a regional natural-gas pipeline; the agreement is projected to supply about 10% of the city's power and return for a second reading at the next meeting.
Saint Mary's City Council held a first reading Tuesday of an ordinance to authorize execution of a 2027 waste-heat energy schedule with American Municipal Power Inc., moving the proposal to a second reading at the next meeting.
The ordinance would authorize the city to enter a 15-year purchase power agreement to buy electricity produced by waste-heat recovery at compressor stations on a regional natural-gas pipeline. City staff described the project as a steady, renewable source that would supply about 10% of the city’s energy needs.
Finance staff explained the technology to the council. “This would serve about 10% of the city's overall energy needs,” said Pines. Councilmember Buck described the project’s mechanics: “There are generators on that pipeline that have heat coming off of them. They're gonna capture that heat and and then convert it to energy or electricity.”
Council members and staff emphasized the contract structure. The presiding official said the city would not own or build the facilities under the agreement: “It'll be a purchase power agreement, which means we're only gonna buy the energy. We're not responsible for any building cost and maintenance cost. We will not own anything.”
Officials discussed price comparisons included in staff materials. The city’s analysis identified a 2027 price of about $45.50 per megawatt-hour, after a $2 renewable energy credit value and a $12 installed capacity value. Staff reported a 15-year average price of approximately $54.60 per megawatt-hour versus a market estimate of about $58.75 per megawatt-hour.
No vote was taken on the ordinance; councilmembers said the measure will return for its second reading at the next meeting. Staff noted the city would buy the energy produced but would not assume construction or operational responsibility.
At the same meeting the council continued routine business, including other ordinances and an executive session on personnel in which no action was taken.
