Title
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A SOLAR POWER PURCHASE AGREEMENT AND A PROPERTY EASEMENT AGREEMENT WITH HUDSON SHINES LLC.
Executive Summary: At the July 10, 2018 Council meeting the City's power consultant Mr. John Courtney recommended that the City move forward with purchasing power from a solar photovoltaic system to be located on a portion of the City's Hines Hill Property. The system would be interconnected to the City's public electric grid (behind the meter). Mr. Courtney also reviewed the submitted KWh pricing and the property easement language for the project. Per the agreements, Hudson Shines LLC, the recommended developer, is to design, construct, own and operate a 2 MW photovoltaic system and provide 100% of the energy production to the City of Hudson at a fixed price for a 25-year term. Hudson Shines LLC will be the exclusive owner and operator of the system and is responsible for meeting all local, state and federal requirements with regards to the solar power system design, construction and operation. The project map has been attached for reference.
Body
Legislative History
* Staff Report #17-0054 - Presentation of project feasibility (6-3-17)
* Staff Report #17-0094 - Discussion of proposed project sites and ROI (10-17-17)
* Res. No. 17-166 - Authorization to develop and issue a formal RFP for multiple sites (10-17-17)
* July 10, 2018 Executive Session - discussion of final proposal financials
Purpose & Explanation
As a review, the purpose of a solar power generation system to be interconnected with Hudson's electric grid is to (1) reduce the City's peak load thereby reducing the amount of power purchased from the market and an overall reduction the City's carbon footprint and (2) by reducing the City's peak load, a savings is realized in capacity and transmission charges. The project and power purchase financials have been attached for reference.
The power purchase agreement (PPA) results and associated recommendat...
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