Washington accepts solar power agreement

WASHINGTON — Washington City Council members have accepted a contract obligating space on three municipally-owned rooftops for solar panels in an effort to reduce the city’s energy bills, and potentially set up the local government to purchase the equipment in the distant future.

The motion to enter the agreement came somewhat abruptly at the council’s Dec. 17 meeting, after several city officials said they were optimistic about the proposal, but wanted to do more research. Council Member Illa Earnest, however, moved to enter the agreement promptly, saying the savings on electricity would eventually total enough to buy the solar panels permanently.

“I think we’d be making a mistaking, and just wasted so much time, it seems like a good deal,” she said, responding to one suggestion that council members hold off on a motion. “I’d hate to see us miss out on this way to cut down some of the costs for the library, and the money we spend on Alliant Energy every month.”

The arrangement is called a “power purchase agreement,” or PPA, in which the city agrees to buy the energy produced by the panels, which are owned by private investors, unless the local government opts to buy the equipment at a later date, with the price reduced for each year they’re in use. The agreement offers electricity and equipment prices up to 25 years after installation.

The panels will be set up atop the Washington Public Library, Washington City Hall and a maintenance building.

Kent Kraus, a representative from Eagle Point Solar, first pitched the plan to city council members in June of last year. He said arrays on the three rooftops could save the city over $1 million after 25 years, depending on how it finances the installation. The issue was revisited at a later meeting in October, sent to the city’s lawyer for some adjustments, and brought back before the council Dec. 17.

The approval motion passed with a 5-1 tally. Council Member Elaine Moore was the lone vote against.

She said she favored the renewable energy technology and had panels installed at her own home, but wanted time to compare Eagle Point’s proposal to other options at other companies.

“I think that we need to make sure this is more competitive,” she said. “I just want to have all my ducks in a row so I make an accurate decision that, nothing against (Eagle Point,) we’re making sure we have the right company, we’re doing it the right way, and it’s going to be the best thing that we do.”

City Administrator Joe Gaa also cautioned against moving too quickly, saying city staff would need substantial time to find comparable agreements given the busy municipal budget season.

“If you’re not comfortable with this agreement now, we can look at things in the future,” he said. “As a staff, we’re not going to be able to focus on this for a little while … 25 years is a big commitment, it’s probably fair to say nobody in this room will be sitting in their seat in 25 years, and that’s tough to envision.”

Others, however, said they were confident in Eagle Point’s reputation, after Kraus said the company led the state in its number of PPA agreements, adding that the delay needed to seek other bids would likely change the cost structure of the agreement proposed Dec. 17.

Mayor Millie Youngquist said she also had a positive experience with Eagle Point Solar, which installed panels at her own house.

“I am comforted by the fact that your company has done more of these PPA arrangements than anybody else in the state,” she said to Kraus at the meeting. “I think you do a great job, based on what I’ve seen.”

Comments: Kalen.McCain@southeastiowaunion.com