Title
A RESOLUTION TO APPROVE THE FORM AND AUTHORIZE THE EXECUTION OF BRIGHT MOUNTAIN SOLAR SCHEDULE WITH AMERICAN MUNICIPAL POWER, INC. AND TAKING OF OTHER ACTIONS IN CONNECTION THEREWITH; AND DECLARING AN EMERGENCY
Brief Description: American Municipal Power (AMP) has negotiated a power purchase agreement (PPA) for competitively priced energy and capacity from the Bright Mountain Solar Project located in eastern Kentucky.
Body
Legislative History
None
Purpose & Explanation
AMP power supply staff have been actively looking at potential opportunities for Hudson to bring on additional sources at competitive pricing.
AMP has secured a 25-year Power Purchase Agreement (PPA) with Avangrid Partners for a 80 MW electricity supply from a solar generation facility in AEP Zone of eastern Kentucky. The purchase agreement is planned for January 1, 2028 start, with a term of twenty five years.
The Bright Mountain Solar is a Peaking resource power supply. Peaking resources are supplies that can be delivered over shorter periods when load exceeds the amount of base and intermediate power. AMP typically uses gas turbine, diesel assets or solar for peak power. The Bright Mountain solar PPA will provide power during the mid-day peak hours, especially during the summer months.
AMP recommends that Hudson purchase 2.5 MW from the Solar PPA. This would provide approximately 3% of Hudson’s annual energy needs and will start in 2028.
The City’s power supply consultant only recommends Hudson purchase 2.5 MW if we do not intend to install a BTM (behind the meter) solar facility within this timeframe. The installation of BTM solar array system via a separate PPA or a City owned and operated facility would be more beneficial due to additional savings in capacity and transmission costs.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
X Other: purchase per master agreement with AMP.
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required
Does this legislation require use of an emergency clause?
X Yes. To expedite contract process and pricing.
No
Recommendation
Suggested Action
Staff recommends the City Council pass this resolution and authorize the City to approve the form and authorize the execution of Bright Mountain Solar schedule with American Municipal Power Inc. and taking other actions in connection therewith: and declaring an emergency.
Submitted by,
Thomas J. Sheridan, City Manager
Kevin Powell, Director of Public Works