Hondo council hears early proposal for large solar project at city airport

Council members on Feb. 24 heard a preliminary plan to develop solar arrays on airport land north of Hondo’s runway, a project staff say could lower municipal electricity costs and generate lease and PILOT revenue for community programs.

John Narra, who introduced the project on behalf of Holistic Utility Solutions, said the airport has roughly 375 to 500 acres of potentially suitable land. He described two development scales: a small system on about 30–60 acres that could offset roughly 25% of the city’s power needs for the airport utility, and a large system that could be on the order of 100 megawatts and would require off-takers beyond the city.

Narra said Holistic Utility Solutions will submit a concept paper for a rural energy grant with a deadline of Feb. 27 and, if encouraged, a full application due Aug. 28. He said the company would apply as the lead and list Hondo as a potential partner; council approval would be required before the city became a formal partner. "They’re actually the ones applying for the grant," Narra said, adding, "it doesn't cost us anything to throw our name in the hat and see if we can get the grant."

Under the plan Narra described, third-party developers would own and operate the arrays; the city would lease airport land and receive lease payments and a payment-in-lieu-of-taxes (PILOT). Narra presented preliminary, projection-based annual figures for a small-system scenario (land-lease revenue of about $50,000, an MOU benefit of about $500,000, and a PILOT estimate of $40,000 for a combined example of roughly $590,000) and a combined large-plus-small scenario with a combined illustrative total near $1,715,000. He emphasized the figures are estimates and that attorneys and staff would negotiate final terms.

Narra said lower residential bills are possible through negotiated power purchase agreement (PPA) terms and distribution of lease/PILOT proceeds. "Let's say you normally pay $100 a month and the utility bill is lowered 2 percent ... you would be looking at a $2 savings," he said, noting savings would vary by household and depend on the contract structure and whether grant funds are awarded.

Council members pressed for details. One asked for a copy of the concept paper prior to submission; Narra said Holistic Utility Solutions was finishing the document and would provide it to the council. A member asked whether the city’s existing contract with CPS imposes minimum purchase obligations; Narra said the project timeline extends toward the end of current negotiations with CPS and that contract terms would be examined during later negotiations.

Environmental and lifecycle concerns also surfaced: a council member asked who would be responsible for disposing of panels at end of life and whether disposal could affect local recharge zones. Narra said developers and attorneys would be asked to include remediation and disposal responsibilities in development agreements.

Narra identified Ira Nicodemus as principal of Holistic Utility Solutions and said the city has formed an internal grant committee to screen opportunities. He repeated that the presentation was preliminary and that staff and the council would receive more detail before any binding commitment.

Next steps: Holistic Utility Solutions will finish and submit the concept paper. If the grant program issues an "encourage" notification, the company and staff expect to return to council with a fuller application and proposed agreements for review; no formal vote or binding city commitment was made at this meeting.