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Council asks staff to review Silicon Ranch solar agreement as wastewater costs remain high
Summary
Councilmembers at the July 8 budget workshop asked staff to have the city attorney review Parlier’s solar agreement with Silicon Ranch, saying the array has not yielded anticipated savings and the city still pays substantial PG&E charges.
Councilmembers raised cost and contract-performance concerns about a solar agreement tied to the wastewater treatment plant during the July 8 budget workshop and asked staff to pursue a legal review.
A councilmember told the workshop that payments to Silicon Ranch and continued PG&E charges were higher than expected and asked staff to find an attorney who specializes in solar contracts to determine whether the developer is meeting its obligations, whether the city can renegotiate, or if the city could terminate the contract. The speaker said they had observed recurring payments to Silicon Ranch (examples cited in discussion included amounts such as $15,000–$18,000 every two weeks) while the city still paid PG&E bills.
City Manager Erin and other councilmembers recommended that the city attorney first review the contract and then, if necessary, retain outside counsel with specialized experience in energy contracts. Erin said the city attorney could review and, if needed, raise additional questions with outside counsel. Council members urged urgency, noting that high electricity expenses affect utility and wastewater rates and that any contract remedy could affect whether the city needs to raise rates for residents.
Staff committed to ask the city attorney to review the Silicon Ranch agreement and to work with finance and operations staff (including the rate-study lead) to quantify the ongoing costs and possible remedies. The council did not take a formal vote at the workshop.
