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Council approves $135,000 settlement to end regional solar purchase agreement
Summary
The borough council approved a mutual termination agreement that relieves the project owner, CL Route 58 B, LLC, of a regional solar PPA and disperses $135,000 among Center County Solar Power Group entities; councilors debated lost long-term savings and the role of federal policy and timing in the project's collapse.
The State College Borough Council voted to approve a mutual termination agreement that ends the Center County Solar Power Group (CCSG) power-purchase agreement and authorizes a $135,000 dispersal among CCSG member entities.
The vote came after staff said the agreement would relieve CL Route 58 B, LLC — the project owner identified in staff materials — of the PPA and allow the participating entities to accept the negotiated payment. The motion was presented by the borough manager and carried after council debate.
Why it matters: supporters said the SPPA had promised long-term savings and local economic benefits, while critics said shifting federal policy and tariffs made the project infeasible. Council President Myers framed the decision as a loss. "It's unfortunate that that opportunity was taken away," Myers said, noting the project was projected to save substantial taxpayer dollars and reduce carbon emissions. Councilmember Herndon cautioned that timing and delays had contributed to the outcome and urged staff to pursue alternate solar opportunities: "I do urge staff to continue to work on finding a way to lock in a low long term energy price using solar generation," he said.
What council discussed: advocates on council and elsewhere argued the SPPA could have delivered more than a million dollars in savings over 15 years; opponents and practical concerns about delivery timelines, pricing and federal policy changes were cited as reasons the developer sought a termination. Councilmembers discussed the legal and administrative costs associated with winding down the agreement; staff disclosed the payout amount and reported legal costs incurred by the organization.
Outcome and next steps: the council approved the termination agreement and the payment. Several council members asked staff to continue seeking solar procurement options that could lock in lower long-term prices even if the projects are smaller in scale or structured differently. The borough manager and staff will proceed with contract execution as authorized by council.
Votes and procedural note: council recorded the motion, debate and a roll-call to approve the termination agreement during the meeting; the resolution authorizing execution was passed by the council and the manager was authorized to sign the agreement.
