Cotati council authorizes microgrid design work as Schneider Electric outlines phased plan

The Cotati City Council authorized design work on a planned microgrid at the City Hall complex after a presentation from Schneider Electric that described a multi‑phase program to add solar photovoltaics, battery storage and EV charging infrastructure.

Why it matters: The project aims to improve climate performance, reduce long‑term energy costs and provide backup power during Public Safety Power Shutoffs (PSPS) and other outages. Council voted to authorize the city manager to proceed with formal design and engineering for a phase‑1 package focused on solar, lighting upgrades and battery storage paired with EV charging infrastructure.

What Schneider Electric presented: Schneider Electric representative Elliot Feldman said the firm’s preliminary evaluation estimated the full recommended scope at about $7 million–$8 million. He described a “good/better/best” approach with 24‑hour or 48‑hour backup options and potential to integrate existing generators or make the system fully renewable. Feldman said pairing battery storage with solar is increasingly important under current PG&E rate structures and NEM 3 rules, and that federal incentives (investment tax credit) and state grants could substantially lower capital costs.

Timing and financing considerations: Staff and Schneider noted urgency to secure a 30 percent federal investment tax credit (ITC) for solar by meeting a safe‑harbor requirement (roughly 5 percent of materials procured or a construction contract executed within the current calendar year). Staff identified grants already applied for (Cal OES microgrid grant, PG&E fleet/EV programs) and said PG&E incentives could supply additional battery funding. Schneider and staff suggested splitting work into a phase‑1 package to capture near‑term incentives and realize early savings while pursuing phase‑2 microgrid controller and integration if grants are awarded.

Council action: A council member moved to authorize the city manager to proceed with microgrid design; the motion was seconded and passed by roll‑call vote with members recording yes votes.

Key figures and conditions discussed: Schneider estimated first‑year operational savings of roughly $100,000 and lifecycle energy cost reductions of about $8.4 million over design life (figures are preliminary). Staff noted an $8,000 exit fee for preliminary engineering if council declined to proceed and a $67,000 exit fee if the city proceeds through final design and later cancels; staff also said the phase‑1 package concentrates major savings while phase‑2 would complete microgrid automation and offer expanded backup duration.

Next steps: Staff will move into the formal design and engineering phase and return to council with a construction amendment and final cost estimates once designs and grant outcomes are clearer. The council authorized the city manager to proceed with this next step.