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Appleton utilities committee authorizes staff to pursue renewable natural gas purchase and site lease
Summary
The Appleton Utilities Committee voted 4-0 to authorize staff to proceed with a proposed renewable natural gas (RNG) purchase and site lease framework with Terreva Outagamie RNG, a deal staff says could generate royalty revenue and delay a planned capital upgrade to on-site biogas storage.
The Appleton City Utilities Committee on Wednesday authorized staff to move forward with a proposed renewable natural gas purchase and site lease framework with Terreva Outagamie RNG, saying the arrangement could provide royalty revenue and reduce near-term capital spending.
The committee’s authorization — approved unanimously, 4-0 — does not finalize a contract but allows staff to continue negotiating the purchase agreement and site lease and to seek common counsel approval. A staff director told the committee a third‑party financial review by Baker Tilly showed the deal’s 20‑year financial outlook would be positive.
The item drew questions about the term and near‑term costs. An alder asked whether a roughly $75,000 investment to convert existing boiler equipment would come from contingency or the capital improvement plan and whether a 20‑year term would lock the city into a long commitment. The director said the boilers currently include dual‑fuel units and that converting a unit to burn natural gas instead of biogas would cost about $77,000; staff said they would plan for that expense in next year’s budget if the agreement proceeds. The director also said the company will need to complete a substantial amount of work — including pipeline and permitting steps — before gas delivery could begin.
Staff described the commercial rationale: the agreement could allow Appleton to rely more on pipeline gas while generating royalty payments, and it would provide a more stable, cleaner supplemental gas source than landfill gas, which can vary in quality. The director said some planned capital work to upgrade on‑site biogas storage would likely be deferred if the purchase agreement moves forward.
Committee members were told the framework includes out‑clauses for unforeseen events and would still require final approvals and company completion of technical prerequisites. The director said the arrangement would not be a turnkey swap and that implementation could take a year, giving staff time to include any conversion costs in the next budget cycle.
The committee voted to recommend approval and forward the authorization to the next step 4-0. The authorization is procedural: it allows continued negotiation and counsel review rather than constituting a final, executed contract.
