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City staff propose interim switch to NTUA renewable‑energy credits to save roughly $21,000 annually
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Summary
Sustainability Director Nicole Antonopoulos recommended the City of Flagstaff transition short‑term renewable energy credit purchases to the Navajo Tribal Utility Authority (NTUA) to reduce REC costs by about $21,000 per year while staff pursues a longer‑term VPPA with regional partners.
City sustainability staff told the Flagstaff City Council on April 28 they recommend an interim transition of municipal renewable energy credit (REC) purchases to the Navajo Tribal Utility Authority to realize near‑term savings while the city evaluates longer‑term procurement.
"RECs are a market‑based commodity that is basically a certificate that proves one unit of clean renewable electricity was produced," Sustainability Director Nicole Antonopoulos told the council, summarizing how RECs let the city balance its energy portfolio while it pursues on‑site solar and efficiency improvements.
Antonopoulos reported the city currently spends just under $98,000 a year on RECs, with Water Services consuming the lion’s share. She said NTUA’s pricing is competitive and would yield nearly a $21,000 annual savings for the city organization compared with the city’s current supplier, APS, but noted sales tax applies to the NTUA pricing.
Anthony Cordoran of NTUA described the authority’s renewable projects (three operational plants including a 72‑megawatt Red Mesa project) and said NTUA can supply hydroelectric RECs now. He also cautioned that hydro allocations tied to the Colorado River and federal hydropower could be variable: "We're very concerned with some of the discussions we've had…we will have to adapt like everybody else," Cordoran said, referencing lower hydropower allocations in 2025.
Antonopoulos told council staff will continue discussions with NTUA while pursuing a Northern Arizona University‑led consortium virtual power purchase agreement (VPPA). She said a VPPA, if economically viable, would take approximately 12–18 months to produce RECs for the city; if it is not viable, the city could continue purchasing RECs from NTUA.
Council members asked about development scale and supply reliability; NTUA officials said they currently have operational solar projects and hydro allocations and plan additional capacity with battery storage coming online. Antonopoulos said the recommendation to move short‑term purchases to NTUA will be placed on a future agenda for council action.
No formal procurement decision was taken at the work session; staff will return with an agenda item to authorize the short‑term switch and continue evaluating the VPPA option.
