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Mt. Vernon approves 30‑year solar purchase arrangement; council notes timing and contingency risks
Summary
Council approved a resolution to pursue a solar power purchase agreement with KPH IL44 for a ~5‑acre array at the wastewater plant, moving to lock a rate of roughly $0.0659/kWh for 30 years. Council and vendor representatives discussed substation upgrade contingencies, long‑term buyout options and the proposal's year‑end timing.
The Mt. Vernon City Council on Dec. 15 approved a resolution authorizing an agreement with KPH IL44, LLC to place a solar farm on about five acres at the city wastewater treatment plant and to use a long-term power purchase agreement (PPA) model presented by the vendor.
City Manager Nathan McKenna introduced the proposal and said the city currently participates in an aggregation for electric supply at about $0.08 per kilowatt-hour; the KPH proposal offered a fixed rate of $0.0659 per kilowatt-hour under a 30‑year commitment and included a vendor‑managed operations, maintenance and insurance approach. The vendor representatives said one estimate of potential savings over 30 years was $3,225,677, while also noting the savings calculation relies on assumptions about future market rates, annual kWh production and city usage patterns.
Representatives Ross Rubenacker and Brandon Bullard described business‑model options including third‑party ownership with a fixed PPA and direct ownership by the city. The vendor said typical end‑of‑term options include donation of the system to the city (with expected production at about 85% of year‑one levels), removal and site restoration at no cost, or negotiating a PPA or buyout on fair market terms. They cautioned that Ameren could require a substation upgrade if the solar installation affects local distribution infrastructure; that requirement could change project economics.
Mayor John Lewis noted a timing constraint, saying the "proposal in the agreement is only good through the end of the year," and suggested the council could hold a special meeting if needed. After discussion and questions, the council approved Resolution #2025-47 (motion by Donte Moore; second by Joe Gliosci).
Next steps noted in the meeting include finalizing contract details and monitoring any required utility infrastructure reviews that could affect rate terms or feasibility.
