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City committee hears PATH proposal to convert streetlights to LED; staff to return with costs and parks add-on in 30 days
Summary
PATH presented a turnkey LED streetlight conversion proposal with an estimated capital cost of about $2.3 million, projected annual utility savings of roughly $152,000, and incentives near $150,000; committee asked staff to return with NES high-level costs, parks inclusion option and financing scenarios for the next meeting.
PATH representative William Hawthorne told the Public Works Committee on April 22 that PATH’s LED streetlight conversion projects in other cities have generally delivered savings that exceeded expectations and, in some cases, lowered the city’s annual lighting expense by roughly half.
Mr. Hawthorne presented a turnkey project estimate of approximately $2.3 million to convert the city’s remaining streetlight fixtures. He said Tennessee Valley Authority (TBA) incentives (referred to in the presentation) have recently increased and could provide roughly $150,000 toward the project. PATH’s analysis in the packet estimated current annual NES (Nashville Electric Service) streetlight expense of about $294,000 would drop to about $141,000 after conversion, yielding an annual gross savings of roughly $152,000.
Committee members asked whether the cost and savings assumptions are reliable, how the project interacts with NES-owned poles and fixtures, whether the city must retire an outstanding NES “buyout” or ongoing charge, and whether procurement and contracting rules permit the city to direct an approved contractor. PATH said the $2.3 million figure is turnkey and includes NES buyout/upfront payment where required; the NES buyout amount is included in the total. PATH noted that some poles are NES-owned and some are city-owned or HOA-owned; accurate field auditing and scoping is required and the recent NES audit will help shorten PATH’s work.
On financing and payback, PATH said the simple payback is long — roughly 15 years on straight-line arithmetic — but pointed to modeled 20‑year savings that make the overall fiscal case stronger. PATH recommended pairing debt with the project so annual debt service could be offset by annual savings. PATH confirmed a number of jurisdictions choose to finance the work rather than pay cash. Committee members asked PATH to produce a parks lighting add-on estimate and to examine financing options; staff and PATH agreed to return with high‑level NES and project costs, park-add options, and financing scenarios at the committee’s next meeting (requested within 30 days).
PATH also flagged supply-chain tariff risk for certain LED components, noting components originate largely overseas; the vendor advised the committee to be aware tariffs could change prices though the firm did not urge an immediate jump to action solely on that basis.
Ending: The committee requested staff and PATH to return with NES pricing comparisons, a parks add-on cost, and financing scenarios for presentation at the next committee meeting.
