Colfax council approves solar payment conditional on PG&E permission; freezes sewer rate for next year

The Colfax City Council approved a resolution on June 20 to issue payment for a 429-kilowatt solar array at the city wastewater treatment plant, but councilmembers required the city to receive a permission-to-operate letter from Pacific Gas & Electric before disbursing funds. The council separately voted to set sewer service charges at a 0% increase for fiscal year 2025–26, citing projected power savings from the new solar system and operational improvements at the plant.

City staff told the council the solar field was built under a 2021 construction grant agreement with the State Water Resources Control Board and was designed and installed by Holt Renewables. The city manager said the array was completed and that Holt Renewables had arranged interconnection with PG&E, but the council conditioned final payment on receiving PG&E’s formal permission-to-operate (PTO) letter.

"Holt Renewables met with PG&E. They've gone through everything, and PG&E told them they could turn it on, so they did," said Jim Fletters (via Zoom), who was on the line to answer technical questions. Jim said he had not yet provided documentation to the city but expected Holt to transmit the PTO once received.

The council heard that the project cost $1,850,000 and that the construction costs were reimbursed by the State Water Resources Control Board. City staff said the system was connected to PG&E only after issues with the local power station were resolved.

Separately, the city manager recommended a 0% sewer rate increase for 2025–26. Staff told the council the recommendation was driven by anticipated energy savings from the newly commissioned solar array and by operational efficiencies implemented by the wastewater plant operator, Matt Anderson.

"It is staff's recommendation that the city council approves a 0% sewer rate increase for the upcoming fiscal year," the city manager said, noting the council could revisit rates later in the year if revenues fell short.

Councilmembers praised recent work at the plant and deferred-maintenance repairs, citing reduced odor and improved operations since the city invested in repairs and new equipment. Several councilmembers singled out plant operator Matt Anderson for his work improving the facility.

Motions and votes: a councilmember moved to approve the solar-related resolution with the condition that payment not be issued until the city received PG&E’s PTO letter; another councilmember seconded the motion. After discussion the motion passed. The council later moved and approved a 0% sewer rate increase for fiscal year 2025–26.

What the council approved and next steps The council’s solar payment approval is explicit about the PTO requirement: final payment will be issued effective on the date the city receives a copy of the PG&E permission-to-operate letter. City staff and the contractor said they expected the documentation to be available promptly; the council asked staff to confirm receipt before releasing funds. For sewer rates, staff and council said the 0% decision represents rate stabilization enabled by the solar project and maintenance work, with the option to revisit rates if financial conditions change.

Authorities and approvals referenced during the discussion included the city’s 2021 construction grant agreement with the State Water Resources Control Board and the Proposition 218 rate-setting process the city used when adopting a variable sewer-rate framework. The council requested that Holt Renewables or PG&E provide the PTO to the city manager for verification before payment.

Council members and city staff said they will monitor the plant’s energy production and the utility savings and will return to the council if circumstances warrant changes to rates or further action.