Council reviews 560 kW solar deal for water plant; staff to bring PPA back for approval

The City of Effingham heard a presentation on a proposed contractor-owned solar energy project at the municipal water treatment plant and directed staff to bring a revised power purchase agreement back for approval at a future meeting.

Public Works Director Harmon said Keystone Power Holdings proposed building and maintaining a roughly 560 kilowatt solar array on about 1.5 acres adjacent to the water plant. ‘‘The best thing about this project is it really doesn't cost the city anything,’’ Harmon said, describing a contractor-built, -maintained and -insured system that would sell produced power to the city under a 30-year agreement. Harmon said the PPA would start at about $0.069 per kilowatt-hour with a 1.25% annual escalator and estimated savings of just over $1,000,000 over 30 years if projections hold.

Harmon noted the array would require a zoning variance because it exceeds 50,000 square feet but is under 100,000. City staff said the site sits roughly 250 feet from the nearest residential property line with a ravine and woods providing buffer; decommissioning responsibility and purchase options for the city at a future date were included in the draft contract.

Council voiced general support for pursuing the arrangement quickly; staff were asked to update the power purchase agreement, secure zoning and utility reviews, and return the package on the omnibus vote agenda or for a future approval vote to enable submittals required to meet tax-credit and construction timelines.

No formal approval was taken tonight; the council directed staff to return with a final PPA and zoning steps for formal action.