Solar city on the way; Council prepares for installation of panels
By Claudia Reed/Staff Writer
By unanimous vote, Wednesday night, the Willits City Council took the first step toward the development of solar electric installations to power major city operations.
Make that the first three steps:
Part one of the motion passed by the council authorized writing an RFP (request for proposals) to supply the City of Willits with sufficient solar panels and necessary equipment to offset the citys electrical needs.
Part two called for submitting an application for installation cost rebates from the California Public Utilities Commission (CPUC) and payment of an application fee of up to $11,500.
Part three authorized a contract of up to $2,500 to hire a consultant to oversee parts one and two.
While the amount of energy produced by the solar panels would not cover the citys full energy usage, the peak hour energy credits from PG&E (Pacific Gas & Electric) for feeding solar power into the grid may pay the full electric bill.
Beyond that, annual payments on the loan needed to cover installation costs are expected to be less than the current annual cost of PG&E electricity. Once the system is paid for the energy would be free.
According to calculations based on a hypothetical 677 KWs of solar power, the loan amount needed would range from $2,166,400 to $4,586,920, depending on the size and difficulty of the installation. Annual payments on a 30-year loan would range from $72,213 to $278,895. The city now pays about $300,000 a year to PG&E.
The savings would be even greater if the city is able to qualify for a no-interest loan through the federal Clean Energy Bond Act.
Its almost like a no-brainer, said Councilman Ron Orenstein, who backed up the recommended motion with a years worth of research by the citys ad hoc alternate energy committee.
The three-part motion reflects the process of bringing in and paying for - for the installation.
The bid package
The consultant hired by the city to write the RFP will develop a list of issues to be dealt with. The contractors who bid for the job will then offer various solutions that dictate the size, style, and placement of the installation.
We want to make sure were asking the right questions, Orenstein told The Willits News after the vote.
Once the bids come in, the consultant will review the various proposals and make a recommendation.
Each bidder will approach this from a slightly different point of view, Orenstein said. We need to have some who can analyze the resulting offers. Its not just money were looking at. We have to compare not only the prices but also what theyre selling us.
Orenstein expects the more open ended bidding process to be cheaper than hiring an engineer to prepare project specifications and calling for bids that would differ only in price.
In bid process, he said, the companies will absorb some of cost of (engineering work) as the cost of doing business.
Engineering work will include determining exactly how much energy the city uses, reducing that amount by recommended conservation measures, and designing a system related to the result.
The possible energy rebates
If the citys application to the CPUC for energy rebates is approved, installation costs would be offset at the rate of $2,800 per KW of generating capacity. That means the payback on a 677 KW installation would be $1,895,600.
The date for the highly competitive application is February 1.
Can we do it by February 1, asked Councilwoman Holly Madrigal.
Orenstein said most of the application had already been filled out on a volunteer basis by energy consultant Keith Rutledge, formerly of the Willits-based Renewable Energy Development Institute (REDI).
The $11,500 application fee will come from city reserves, which now total about $800,000.
Wed have to do a really bad job to not have the money refundable if they dont approve it and folded into the project if they do, said City Manager Ross Walker.
Watts next?
The ad hoc committee that did the initial study of city energy use and related alternate energy possibilities, also identified a source for hydroelectric power that could be developed in the future. The solar project was advanced first, since PG&E is not required to buy energy produced by hydroelectric generation.
Last summer we visited the Morris reservoir, Orenstein reported. Theres an outflow pipe pouring out even in the dry season. It was like a big neon sign saying Hydroelectric Generation! It was perfect.
With alternate energy systems in place, he said, the city might be in position to sell sustainable energy to local consumers. Another possibility is qualifying for alternate energy certificates (also called green certificates) issued by the US Department of Energy.
The certificates, designed to create a market-based method of pollution control, could then be sold to companies or utilities that release carbon dioxide and other contaminants. The idea is to set a fixed permissible amount of total pollutant. Those who release carbon dioxide and other problematic substances would be forced to buy certificates from those with more environmentally friendly systems.
Finally, there is the possibility of eco-tourism as Willits becomes an example of local sustainability.
It sends a message to people that we are environmentally and socially responsible, said Community Development Director Alan Falleri.
He added the solar installation would also provide emergency protection if more conventional electrical systems fail.
What came before
City staff and officials took turns thanking the members of the ad hoc committee for a year of unpaid professional service lead to the move toward sustainable energy systems.
Im grateful we have people willing to volunteer time in an area where I dont have expertise, said Mayor Tami Jorgensen.
City Manager Ross Walker shared her response, saying the committee had brought the technical information to such a level of refinement that city staff didnt have to put a lot of time into understanding it.
Active committee members include electrical engineer Brian Corzelius, electrical contractor and solar panel installer Ralph Pisciotta, Phil and Richard Jergensen of REDI, and solar panel owner Gary Owen.
Its probably the first time the council did something so overtly environmentally correct, Orenstein said after the vote. Its really cool
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