Developer proposes biomass microgrid, urges city to explore municipal utility

Representatives of Butte Renewable Energy Inc. told the Oroville City Council on July 1 that they can design, finance and build a phased microgrid for the city that would pair solar, battery storage and biomass conversion to lower energy costs, produce Power-to-X fuels and provide a base electrical supply.

Michael Spencer, who identified himself as representing “BRE, short for Butte Renewable Energy Inc.,” told the council the company would fund, develop and construct generation and distribution assets and then transfer the distribution microgrid from the substation to customers to the city, enabling “a new publicly owned utility, POU.” He said BREE would then sell power to that utility through a power purchase arrangement.

The proposal, presented by Spencer and partner Ben Tolbert, described a multi‑phase program intended to: give Oroville more control over local energy supply; reduce costs for industrial and household customers; preserve local industry and jobs; and create a resilient baseload to support new industry. The presenters said they expect financing sources and grants could be available to support construction, and proposed a long-term PPA term (the presentation named a 60‑year initial term).

Why it matters: Council members and public commenters said Oroville’s high electricity costs are affecting local business competitiveness and spoke in favor of…