LH Council Hears Two Proposals for Solar Panels for Sewer Plant
By Scott Johnson
LOCK HAVEN – City Council, at its meeting Monday night, heard in-depth proposals from two firms regarding possibly placing solar panel arrays next to the city’s sewer plant. Both proposals would involve no up-front money with the city using no net electricity at the plant from PPL.
Both have several options included in their presentations.
The first presentation was from Sel Edor, BAI Grooup. The engineering firm works with Dublin, Ohio-based IGS Solar, which would finance and operate the project.
He said the system size estimate is between one and three megawatts, with an estimated output of between one and four megawatts.
According to the presentation, IGS Solar develops, finances, builds, owns, operates and maintains commercial solar systems for its customers; and owns and operates over $250 million in assets across the country under Power Purchase Agreements (PPAs), which provides benefits of solar with no capital expense to its customers.
Edor said the firm offers two options – both 30 years in length. One has a 7.4 cent per kWh with a 1.9 percent annual escalator or 8.2 cent per kWh with a 1 percent annual escalator. The other option has lower prices but IGS would claim the benefits from the SREC (Solar Renewable Energy Credit.
“For the next 30 years, you would know what your price will be. Plus, it will energize the community and may be inspired to do other things on their own,” he said, adding his firm recently installed a solar array at Burkholder’s Market in Spring Mills. “Our company started in 1999, so we are not a fly-by-night business.”
Next was Loretta Ottinger, solar project developer for RER Energy Group of Reading.
Her company’s proposal is for 2.8 megawatts, or about 90 percent of the plant’s current usage.
Ottinger said the company can increase, but that number was based on the city likely enacting new energy efficiencies in the near future.
Her firm has several buy-back options. One, the 25-year buy-back shows a utility savings of $2.4 million over 25 years. Another, with the city getting higher SRECs in the first 10 years shows a utility savings and revenue of $2.5 million over 25 years. A third estimates the city saving $4.6 million over 30 years after buying the equipment after six years for just over $3 million.
Lastly, an option estimates the city saving $4.5 million over 30 years after buying the equipment after year six and an SREC payments from until the seventh year, with SREC revenue at around $100,000 from years 7-15. The purchase price would also be lower at just under $3 million.
Several members of the City Authority were present as it oversees about half of the land being sought for the project. Council asked the authority to meet and make a recommendation before City Council’s next meeting on Aug. 19, with a vote from council that night.
City Public Works Director Tony Stopper previously said the plan would include the demolition of the former sewer plant and about 14 acres of usable space. He previously said he hopes during this budget season this fall he can project a net-zero use of electricity at the sewer plant for next year. “This was a mix of what you will take as a guarantee and not,” said City Manager Greg Wilson of the presentations.
In other matters Monday night, council approved the bid from Glenn O. Hawbaker Inc. for $191,760 for the city street refurbishing project. This project will include the paving of East Walnut Street from Hanna Street to the SEDA-COG Joint Rail Authority railroad tracks and the paving of West Bald Eagle Street from Commerce Street to the Norfolk Southern railroad tracks. This work also includes utility trench restoration from sewer repairs, water repairs and storm line repairs.The lone other bid was from HRI Inc. at $198,975. Wilson said the bid was in line with the city’s estimate.
Council also heard from Wilson the PLCB approved the city’s petition for exemption of its noise ordinance for the city’s ordinance until July 31, 2010. Wilson also said the demolition of the final two buildings at the former Town Tavern site is likely in about a month.
