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Mesa utility staff recommend 20‑year PPA and battery storage purchase as council prepares to vote
Summary
Mesa's energy staff told council they have finalized a 20‑year agreement for 25 MW of solar paired with 20 MW of battery storage through a multi‑participant project; the contract is expected to begin in 2027 and staff said it would boost Mesa's renewable share while locking in long‑term pricing.
City energy staff presented details of a negotiated power purchase and energy storage agreement associated with a utility‑scale solar and battery project. Scott Buche9, Mesa's energy and sustainability director, said the city previously authorized negotiations and staff returned with a finalized agreement the cooperative board approved; council is scheduled to vote on the contract at the March 9 meeting.
Deb Ferraro, the city's energy resources coordinator, summarized the commitment: "It is a 25 megawatt solar power project and that is accompanied with 20 megawws of battery storage system. This is a 20‑year agreement to start in 2027," she said. Ferraro told council Mesa is one of ten participants in the project and that the shared project is large enough to provide economies of scale and lower prices compared with one‑off procurements.
Staff showed how the deal would fit into Mesa's integrated resource plan: with the project included, they said, the new resource would account for roughly 21% of Mesa's portfolio in future years. Staff also reviewed alternative categories in Mesa's supply mix (bilateral contracts, RMS purchases, WAPA hydropower and customer solar) to illustrate price variability and the role of the new contract in stabilizing long‑term costs.
Council members pressed staff on risk: how a 20‑year fixed arrangement compares to short‑term monthly purchases, and what contingencies exist if hydropower deliveries fall. Staff said replacement options through WAPA exist (replacement power or money in lieu) and that prior market spikes required one‑time use of ARPA funds to subsidize extreme short‑term purchases; staff emphasized the PPA's goal was greater price certainty, reliability and diversification.
The study session did not include a formal vote, but staff said final approval of the negotiated contract is scheduled for the March 9 council meeting.
