Sedona council backs further study of NAU-led virtual power purchase agreement consortium

Sedona city officials told staff on Oct. 25 they support further study of an intergovernmental agreement (IGA) with Northern Arizona University to pursue renewable energy through virtual power purchase agreements (VPPAs), but no contract or formal vote was taken at the meeting.

Bryce, a city staff member presenting the proposal, said the IGA with NAU would bring Sedona into a statewide consortium that includes Northern Arizona University, Arizona State University, the City of Flagstaff, the cities of Tempe and Phoenix and others. “There is no direct project up for review,” Bryce said, describing the session as an information and direction request rather than a final proposal.

The presentation explained the difference between on-site power purchase agreements and VPPAs, in which energy from a remotely sited renewable facility is sold into a wholesale market and participants settle the financial difference against a negotiated “strike price.” Bryce said VPPAs typically run 10 to 25 years and that NAU has retained consultants (USource) and outside counsel to support procurement and modeling.

Why it matters: Sedona’s municipal electricity use is…