Title
A RESOLUTION TO APPROVE THE FORM AND AUTHORIZE THE EXECUTION OF A POWER SALES CONTRACT WITH AMERICAN MUNICIPAL POWER, INC. AND TAKING OTHER ACTIONS IN CONNECTION THEREWITH REGARDING PARTICIPATION IN THE AMP SOLAR PROJECT II; AND DECLARING AN EMERGENCY.
Executive Summary: American Municipal Power (AMP) is offering member community participation in the AMP Phase II Solar Project. Together with Phase I the solar project will be comprised of 26 solar generation sites to be built behind the meter in a number of member communities. The solar generation output will be sold as peaking power at a very competitive price point for a 25 year term. AMP representative, Mr. Jay Myers, and Asst. City Manager, Frank Comeriato will present the project to Hudson City Council and seek permission to proceed with executing the project contract.
Body
Legislative History
N/A
Purpose & Explanation
The City’s power supply resources consist of a number of different types such as fossil fuels, hydro and methane gas. A large portion of the City’s power needs are met through participation and /or part ownership in AMP power generation projects and hedged purchases off the open market. The remaining power requirements which occur during peak demand hours when power prices are the highest are currently secured at a fixed rate with First Energy through 2020. The AMP Phase II Solar Project will provide Hudson with approximately 5% of its power resources and account for approximately 2% of the City’s annual power costs.
Timing Considerations
The solar project contract deadline is December 1, 2016. Staff wishes to proceed with executing the contract as soon as possible.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends passage of this Resolution.
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato, Jr., Asst. City Manager