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Council backs 20-year solar purchase agreements; staff raises 12¢ not-to-exceed cap to avoid breaches
Summary
Westerville approved 20-year power purchase agreements with Clean Energy Ventures for behind-the-meter solar projects. Staff said the ordinance was revised to allow a not-to-exceed energy price of 12¢/kWh to accommodate escalators; staff presented modeled average costs and offset assumptions.
Westerville City Council on Tuesday unanimously approved an ordinance authorizing power-purchase agreements (PPAs) with Clean Energy Ventures to build solar electric projects in the city and supply energy under 20-year contracts.
City staff explained a change to the ordinance since first reading: originally the PPA language capped energy at 8 cents per kilowatt-hour; staff asked the council to allow a higher not-to-exceed cap of 12 cents per kilowatt-hour to accommodate expected escalators over the 20-year term and avoid contract breaches. Staff said the city still intends to target lower prices (roughly 6–8¢/kWh in year one) while acknowledging escalation built into later years of the contract.
In staff modeling presented to council, an 8¢ starting price with a 2% annual escalation yields a 20-year average simple energy price of about 9.7¢/kWh. When projected capacity and transmission offsets are included, staff showed an estimated average net cost of roughly 3.7¢/kWh over the 20-year term under the scenario modeled. Staff said the estimate depends on assumptions about capacity and transmission offsets and the chosen starting PPA price; a 6¢ starting PPA with 2% escalation produced a modeled net cost near 1.3¢/kWh in staff materials.
Councilors praised the education provided by staff and the developer during prior briefings and moved the ordinance on third reading; the roll-call vote was unanimous.
During public comment earlier in the meeting resident John Gaddis told council he supported the solar project and asked that the city monitor federal renewable energy tax incentives and accelerate or expand projects if federal credits changed.
Staff noted the projects are placed behind the city’s meter, which can reduce the city’s peak demand and produce capacity-related offsets that improve lifecycle economics. The ordinance authorizes staff to finalize agreements and execute necessary documents with Clean Energy Ventures under the revised not-to-exceed structure.
Council members voting yes were Mayor Kenneth L. Wright, Dr. Coombs, Mr. Glasgow, Mr. Grimes, Mr. Washburn and Vice Chair Reemschneider.
