Board approves 20‑year solar power purchase agreement with Luminess

Southern Kern Unified School District trustees voted 4–0 to approve a 20‑year power purchase agreement (PPA) with renewable-energy developer Luminess, a contract the district says requires no upfront capital outlay by the district and is intended to provide long‑term energy savings.

District staff told the board the PPA would start at an energy rate of about $0.18 per kilowatt‑hour and include an annual escalation of roughly 3.5 percent, a rate staff characterized as climbing more slowly than historical retail increases. “So we'll start at 18¢, and then from there, it'll climb, but it'll go at a rate slower than historically,” said Mr. Erving, the staff presenter for the item.

Board discussion identified several practical points: Luminess will fund construction and handle maintenance for the installed equipment while the systems remain under the vendor's ownership during the PPA term; the district will not pay capital costs at installation. A board member summarized the projected impact as substantial savings over the life of the contract, noting staff estimates of savings “over $20,000,000” across 20 years.

Trustees also discussed the project's role in meeting energy requirements for the new CTE building and the need for required approvals from state facilities authorities (DSA) before work can proceed. The district said the PPA includes provisions for future conversations at contract expiration about whether to assume ownership or extend arrangements. The board adopted Resolution No. 25‑26‑O9, authorizing execution of the PPA and related documents.

The district indicated future steps include completing DSA submittals, finalizing any site‑specific documents, and executing the vendor agreement. The resolution passed with four ayes and one trustee absent.