AGENDA #4i
MEMORANDUM
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TO: |
Mayor and Town Council |
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FROM: |
Roger Stancil, Town Manager |
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DATE: |
September 24, 2007 |
The purpose of this memorandum is to recommend that the Town Council authorize the Town Manager to execute a contract between Duke Energy Carolinas, LLC and the Town of Chapel Hill in the form of a Purchased Power Agreement for the Town to sell and deliver, exclusively to Duke Energy Carolinas LLC, all of the power generated by a photovoltaic array system, which is located on Fire Station #1, 405 Martin Luther King Jr. Boulevard, Chapel Hill North Carolina.
BACKGROUND
On January 26, 2006, the State Energy Office notified the Town that our request for a grant to complete the photovoltaic system installation at Fire Station #1 was approved in the amount of $30,000. The grant required that the Town provide matching funds for this project in an amount not to exceed $8,000. Matching funds were provided from 2003 bond funds as approved by the Council on April 10, 2006.
On November 15, 2006, the Town signed a contract with Sundance Power Systems, Inc. of Mars Hill, North Carolina to install and connect a 4.16 Kilowatt photovoltaic array and associated systems at Fire Station #1 for the sum of $34,267.58.
DISCUSSION
The installation of the photovoltaic array system has been completed and has been inspected by the Town’s Inspections Department. The contractor is waiting for the system to be connected to the utility grid by Duke Energy before commissioning the system.
Duke Energy Carolinas requires the Town to sign a Purchased Power Agreement, in which the Town would sell the output of the photovoltaic system exclusively to Duke Energy, before they will proceed to connect the system to the Duke Energy utility grid. The Town will then use the forthcoming utility statements to apply for NC GreenPower reimbursements.
RECOMMENDATION
That the Council adopt the attached resolution authorizing the Town Manager to enter into a contract with Duke Energy Carolinas, LLC in the form of a Purchased Power Agreement for the Fire Station #1 photovoltaic System.