AGENDA # 4h

memorandum

to:

Mayor and Town Council

from:

Sustainability Energy and Environment (SEE) Committee
Mayor Pro Tem Jim Ward (Chair)
Council Member Bill Strom
Council Member Ed Harrison
Council Member Laurin Easthom

subject:

Resolution Authorizing the Mayor to Request a Fee Waiver from Duke Energy for Town Solar Energy Projects with “Buy All/Sell All” Metering

date:

January 28, 2008

PURPOSE

The attached resolution would authorize the Mayor to write a letter requesting a fee waiver from Duke Energy for Town solar energy projects with “Buy All/Sell All” metering.

BACKGROUND AND DISCUSSION

As part of the Town’s implementation of a 4.68 kilowatt solar photovoltaic (PV) array at Fire Station #1, the attached Purchased Power Agreement was executed with Duke Energy Carolinas, LLC to establish a “Buy All/Sell All” metering arrangement.  Under this type of agreement, Duke Energy—in cooperation with the NC GreenPower Program—compensates the Town for sending all of the usable energy generated by the photovoltaic system to the grid.   In the course of evaluating the economies related to this type of investment, we found that the fees associated with a “Buy All/Sell All” metering arrangement amount to a major expense.  Given the narrow margin of benefits associated with this project, we believe that any ability to reduce costs would enhance the financial viability of this and similar future renewable energy investments.

The issue of the fees associated with the metering arrangement described above was discussed at length by the SEE Committee at the January 18, 2008 meeting.  The Committee agreed that it would be appropriate to request that the Council authorize the Mayor to send a letter to Duke Energy requesting a fee waiver for present and future “Buy All/Sell All” metering arrangements, up to and including monthly fees and the one-time filing fee.

The attached resolution would authorize the Mayor to write a letter requesting a fee waiver from Duke Energy for Town solar energy projects with “Buy All/Sell All” metering.

RECOMMENDATION

We recommend that the Council adopt the attached Resolution that would authorize the Mayor to write a letter requesting a fee waiver from Duke Energy for Town solar energy projects with “Buy All/Sell All” metering.

With Council’s agreement, we will prepare the letter for the Mayor’s signature and provide a copy to Council.

ATTACHMENTS

1.      Purchased Power Agreement for Fire Station #1 (p. 4)