Marion Commission approves new solar power purchase agreement for water and wastewater plants
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Summary
The Marion City Commission authorized a new power purchase agreement to install two solar arrays at the city's water and wastewater plants; staff said updated rates and new investors change the long-term savings profile but should still yield significant energy cost reductions.
The Marion City Commission voted to authorize a new power purchase agreement to install solar arrays at the city's water and wastewater treatment plants, a project staff said was first discussed in 2020–2023 and has undergone changes in investors and pricing.
According to the speaker who introduced the item (Lawmaker, speaker 2), the city previously estimated roughly $5,000,000 in savings over 25 years under an earlier rate schedule; staff told commissioners the new agreement retains the same contract terms and conditions but will attach an updated rate exhibit. "The PPA will be identical except for an attached exhibit, which will have these numbers that you're looking at now," a staff member (speaker 3) said.
Council discussed specific rate figures during the presentation: staff referenced an earlier signed rate of about 3.771¢ per kilowatt-hour and said the new rate structure under consideration averages about 4.95¢/kWh with a long-run maximum near 5.82¢/kWh. Staff also said Celestial Energy purchased the panels and that the project's investor/owner role has shifted to a firm the speaker identified as Third Pillar; the city will not own or operate the equipment and will instead purchase energy from the developer under the PPA.
Commissioners asked about risk, timeline and the contract document. Staff confirmed the council was being asked to authorize the rate-exhibit swap now and that the full PPA document with the updated exhibit would follow for final administrative processing. "We're not approving the document at this point," the presenting staff member said; "the PPA will be identical except for an attached exhibit."
A motion to authorize the city to proceed with the new PPA and attached rate schedule was made on the floor and approved by roll call. The clerk called commissioners and the mayor; each voting member answered in the affirmative during the recorded roll call.
Next steps: staff will receive and circulate the finalized PPA with the attached rate exhibit and coordinate timing for ordering and installation. Commissioners asked staff to continue reporting milestones and to note any material changes to investor commitments or federal tax-credit rules that could affect project viability.
