UTILITY COMMITTEE
The Utility Committee Meeting was held on July 13, 2009 at 5:01 p.m. with Councilman McGiffin presiding in the absence of Chairman Ruane. Members present were Mr. Hogan, Major Kosior, and Mr. Snaman. Members of Council present were Mr. Leary and Mr. Salters (arrived at 5:06 p.m.). Mayor Carey was also present.
AGENDA ADDITIONS/DELETIONS
Major Kosior moved for approval of the agenda, seconded by Mr. Hogan and unanimously carried.
Presentation - 2030 Energy Committee - Solar Project Agreement
Mr. DePrima, City Manager, reminded members that since May 2007, the Dover 2030 Energy Plan Committee has been meeting approximately monthly to review the PJM Market, evaluate the capacity/energy requirements of our system, and identify action plans to address future energy needs. After extensive discussion on the market and capacity/energy shortfall, it was decided to solicit the energy development market to gain knowledge of what options are available to the City through a Request for Qualifications process. Mr. DePrima explained that the goal was to gain information and knowledge from the potential developers and identify possible solutions to our requirements. This concept was outlined at several Utility Committee Meetings. The City then completed Phase II of the project, which was the evaluation of the proposals and the selection of four (4) options in which to enter negotiations. He stated that the agreement presented to members is the first agreement to be considered from the negotiations process and will be for a photovoltaic (solar) energy generation plant with an approximate capacity of 10 megawatts (MW). If approved, Mr. DePrima stated that this agreement will be followed by a Land Lease Agreement and an Interconnection Agreement for consideration.
Mr. DePrima noted that there has been some proprietary information redacted from the agreement presented, which is related to costs that the City would pay for energy for this project. He stated that these amounts will be shared with City Council in an executive session, explaining that the committee’s charge is to review the utility and power generation aspect of this project. Mr. DePrima also stated that the agreement does not depict where the project will be located on the Garrison Tract. He advised members that the project will take approximately 25% of the Garrison Tract (on the southeast corner) and that specifics will be provided with the Land Lease Agreement.
Mr. Francis Hodsell, Director of Industrial and Asset Strategies with PACE, provided an overview of the project and reminded members that the last presentation was made during a Council Workshop on December 1, 2008.
Staff recommended that the City Manager be authorized to execute the Solar Energy Purchase Agreement with White Oak Solar Energy, LLC as per the terms outlined in the Agreement.
Responding to Mr. Hogan, Mr. Joe Gorberg, representative of White Oak Solar Energy, LLC, (employed by LS Power), stated that the solar modules are generally 2 ½ x 4-5 feet in size, and that there will be thousands of them placed in rows, mounted to structures in the ground. The life expectancy of the panels is more than 25 years.
Mr. George Emberger, Wild Meadows, questioned if the solar power projects eliminate natural gas energy projects. Responding, Mr. DePrima stated that the projects are not mutually exclusive and that discussions are continuing regarding the natural gas energy projects; however, they are not as far along as the solar power projects. In response to Mr. Emberger’s questions regarding the land required for the panels, Mr. DePrima stated that the City will lease the property, reiterating that a Land Lease Agreement will be forthcoming.
Mr. Emberger questioned how the solar power would be dispensed throughout the City. Responding, Mr. DePrima stated that this power would go into the 69kv line; therefore, it would be evenly dispersed amongst all City of Dover customers.
Mr. Jim Brockton, Wild Meadows, questioned why the City has not considered taking the entire Garrison Tract, covering it with solar panels, and selling the energy rather than trying to find tenants for the land. He indicated no objections to the solar power projects, and explained that the neighborhood concerns were with the location of the panels due to the close proximity.
Mr. Hogan moved to recommend that the City Manager be authorized to execute the Solar Energy Purchase Agreement with White Oak Solar Energy, LLC, as per the terms outlined in the Agreement (Attachment #1). The motion was seconded by Major Kosior and unanimously carried.
PACE/NAES Monthly Report (April and May)
Members were provided the PACE/NAES Monthly Reports for April and May 2009. The reports are being provided to allow members the opportunity to monitor what is being sold in electric and the revenues received, which will give members a better understanding of any fluctuations and make improvements if deemed necessary. Although it was not staff’s intention to make a presentation of the report, they welcomed any questions.
Mr. Snaman moved to recommend acceptance of the PACE/NAES monthly reports for April and May, seconded by Mr. Hogan and unanimously carried.
Mr. Snaman moved for adjournment, seconded by Mr. Hogan and unanimously carried.
Meeting Adjourned at 5:43 P.M.
Respectfully submitted,
James G. McGiffin
Acting Chairman
JGM/JS/jg/ac/tm
S:ClerksOfficeAgendas&MinutesCommittee-Minutes20097-13-2009 UTILITY.wpd
Attachments
Attachment #1 - Solar Energy Purchase Agreement with White Oak Solar Energy, LLC