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Afton approves addendum to split Swift Creek hydro output with Lower Valley Energy
Summary
The Afton Town Council approved a Third Addendum to the Swift Creek Hydro agreement that divides all electric output evenly between the Town and Lower Valley Energy and authorizes the mayor to sign the document; council also heard project financials and was told the plant is operating well.
Afton — The Afton Town Council on March 9 approved a Third Addendum to the Swift Creek Hydro Electric Company, LLC agreement that splits the plant’s electric output evenly between Lower Valley Energy (LVE) and the Town of Afton and authorizes the mayor to sign the document.
James Webb, CEO and president of Lower Valley Energy, presented the addendum and financial reports for the Swift Creek Hydro Power Project for the year ending Dec. 31, 2020. Webb said the project is running well and explained that early financing used bonds issued at zero percent interest but that borrowing costs and electricity prices have since increased. He said the project is expected to reach positive cash flow over time.
The addendum presented by Webb states that “all electric output from the Company shall be evenly divided between Lower Valley Energy and the Town of Afton” and that LVE “shall buy the Town's share of output on a monthly basis” at the cost of production. Council Member Abby Humes moved to approve the document and authorize Mayor Jason C. Inskeep to sign; Council Member Will Wilkes seconded. The motion carried unanimously.
Town Administrator Violet Sanderson had earlier reviewed the town’s financial statements through Feb. 28, 2021; the council received the hydro project’s statement of operations and balance sheet as part of the presentation. John Hougland and Mallory Winters of Lower Valley Energy gave operational updates, reporting steady performance.
The council did not alter the addendum language at the meeting and voted to approve the version presented by LVE’s board. The council’s action authorizes the mayor to execute the document; implementation details such as billing timing and accounting for the town’s share were described in the addendum as purchase at cost of production. The council gave no timetable for further amendments.
The council approved the addendum during routine business; no public comment was recorded on the item. The council carried the motion unanimously.
