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Council discusses city‑owned solar options and short‑term costs; no action taken
Summary
Staff presented scenarios comparing wholesale power purchases to city ownership of solar generation; council expressed concern about premiums to ratepayers, construction risk and tax‑credit timing and requested deeper financial analysis before any commitment.
Councilmembers heard a staff presentation on Nov. 18 outlining the financial tradeoffs of adding city‑owned solar generation versus continuing to purchase wholesale power. Staff modeled scenarios (including a 10% solar mix with an estimated delivered cost of about 7.8¢ per kilowatt‑hour for solar) and projected long‑term rate impacts through 2041.
Presenters said the mix would likely increase costs for ratepayers — staff estimated a premium of roughly $1.2 million in a near‑term scenario when comparing a 90/10 mix to current purchased power costs — and noted substantial assumptions about escalation, lifespan, and financing. Council members and staff discussed demolition/decommissioning costs at end of life, potential bond payments, tax‑credit timing and construction risks, and whether a private developer or NPPD would be a better partner. Several council members said the math did not yet make sense for the city to own and operate a solar field and recommended more time for analysis.
No policy decision or vote was taken. Council asked staff to pursue more detailed cost analyses and to explore options that avoid placing large bonding risk on the city while preserving possible economic development opportunities tied to a green energy component.
