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Path presents $2.3M LED street-light conversion; staff to return cost and financing options
Summary
Representatives from Path briefed the Public Works Committee on a proposed $2.3 million LED street-light conversion, projected annual savings of about $152,006, TBA incentives near $150,000 and a 15-year payback; the committee asked staff to return combined NES/Path cost estimates and park add-on pricing within 30 days.
Representatives from Path, an energy services company, presented a proposal April 22 to convert Hendersonville’s street-light system to LED at an estimated turnkey cost of about $2.3 million, including NES buyout charges. Path said recent projects in other jurisdictions have produced larger-than-expected savings and that incentives from TVA (referred to in the presentation as TBA) could total roughly $150,000 for Hendersonville.
Path representative William Hackton described the proposal as a turnkey package that includes the city’s share of utility buyout costs and project implementation. Hackton said the company projects gross annual savings of approximately $152,005.96 beginning in year one and estimated a payback period in the neighborhood of 15 years; he and committee members noted the payback estimate depends on financing assumptions and project scope.
Committee members asked about ownership of poles and fixtures: many lights are on NES-owned poles (an estimated 85% NES and 15% CEMC or city-owned split was discussed), and NES/TVA policies factor into costs and required approvals. Hackton said NES audit data recently collected would shorten Path’s scoping work and that the NES/TVA buyout payment is mandated and not negotiable because it retires remaining utility plant charges.
The committee discussed financing approaches, the possibility of pairing debt with projected savings (debt service offset by energy savings), and nonconventional loan options. Members asked Path to include parks and sports-field lighting as an add-on option; Path said combining park lighting with street lighting can improve overall project economics though park lighting alone has a longer payback. A tariff (import) risk for components sourced from China was mentioned; Path asked the city to be aware but did not recommend immediate action based solely on that risk.
The committee did not vote to accept or reject the Path proposal. Instead members directed staff to gather combined estimates (Path and NES comparison), financing options and a parks add-on price and to return to the committee at the next meeting (about 30 days).
