Label
LETTER OF INTENT SOLAR ARRAY
Department of Law
Leslie Kovacik (x1020)
(Revised)
Title
Authorizing the mayor to execute a Letter of Intent with Palmer Energy Company, Inc. to facilitate an RFP process to solicit and obtain a vendor to construct a local solar array; authorizing the mayor to execute power purchase agreements for a portion of the solar power output, subject to future appropriations; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
The City of Toledo has operated electric Governmental Aggregation programs, certified by the Public Utilities Commission of Ohio, since 2000. Since that time the City has operated these programs in conjunction with our neighboring communities, collectively known as the Northwest Ohio Aggregation Coalition ("NOAC"). Through year 2019, NOAC has obtained savings for its residential and small commercial electric aggregation participants totaling $86 million.
Presently NOAC desires to obtain a vendor to own and construct a solar field in our area for the purpose of utilizing green energy in each communities' energy portfolio and for our aggregation participants. Since 2000 NOAC has partnered with Palmer Energy Company, Inc., to manage, advocate and facilitate our aggregation programs as well as for the City's facilities. Palmer Energy will oversee this solar array solicitation process, write the RFP, analyze the responses and make recommendations to NOAC on the viability of such a program. It is anticipated that the resulting solar power purchase agreement will establish fixed pricing for up to 25% of NOAC's power needs and such allocation will operate as a hedge against future power price increases.
NOAC member communities have been asked to sign a letter of intent to permit Palmer Energy to request proposals from solar power facilities in Ohio, and to use good faith efforts to negotiate the resulting power purchase agreements. Funds for the purchase of this solar power for City facilities would be auth...
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