Keene panel backs airport solar project and authorizes manager to negotiate with Revision Energy

The Keene Finance, Organization and Personnel Committee voted unanimously to recommend a bond appropriation for the Keene Airport solar project and authorized the city manager to negotiate and execute a construction contract with Revision Energy.

City Manager (unnamed) told the committee the multi-megawatt project has been under development for several years and that acting quickly could secure a federal investment tax credit. “If we are successful at meeting the buying threshold of 5% or more in time for the safe harbor of the investment tax credit, we would be reimbursed just over $3,400,000 in 1 year,” the City Manager said, noting that the reimbursement would substantially reduce the city’s net project cost and accelerate payback.

The manager and staff presented two procurement options discussed at earlier meetings: a power-purchase agreement (PPA), where the city buys power but does not own the array, and an outright purchase. The manager said purchasing the system yields the greatest financial benefit in long-term projections but acknowledged a PPA remains an option. “If we purchase, we obviously see the greatest benefit,” the manager said. The presentation included Beacon Integrated Solutions’ conservative analysis, which the manager said shows the project yields a positive cash flow in year 1 with the tax credit and in year 3 without it.

Dan Weeks of Revision Energy and Carrie Chamberlain, the finance director, were in the room to answer technical and financial questions. Jacob Favelis (Ward 1) asked whether the city would own and operate the system; staff answered that the city could either enter a PPA or purchase but that the purchase option carries larger savings in the city’s models.

The manager also summarized estimated environmental gains: the project was described as among the largest municipal solar installations in the state and was estimated in the presentation to avoid roughly 6,500,000 pounds of carbon-dioxide-equivalent emissions annually. The manager and revision materials shown to the committee included multi-decade savings estimates; the manager said conservative projections still showed net savings.

After discussion the committee approved two motions: one recommending adoption of the appropriation resolution and a second authorizing the city manager to negotiate and execute a contract with Revision Energy. Both motions were approved by voice vote with no opposition in committee.

The committee directed staff to continue finalizing financing details, bond counsel and procurement documents. The City Manager said the city intends to move quickly to meet the federal safe-harbor timing; the committee’s recommendation goes to the full council for final approval.