City Council Regular Meeting


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CL-2412 New Business   Item #: F.       
Meeting Date: 11/17/2020  
Subject:    Pinnacles Hydro Metering and Billing-American Municipal Power
From: Jason Grey

Business Meeting:     11/17/2020
The City of Danville is in the process of selling the Pinnacles Hydro facility to Northbrook Energy.  The City will need to establish a metering point at the plant to be used for system statistics and billing purposes; the City will continue to receive the ten megawatts of hydro energy from the facility.   From a financial perspective, staff would like City Council's approval to have American Municipal Power (AMP) meter the hydro facility and bill the City for the energy, capacity, and renewable energy credits produced.  AMP currently provides this service for the Kentuck solar farm, Schoolfield Hydro facility, Whitmell/Irish Road solar farms, and soon to be completed Ringgold solar farm.
In July 2020, City Council authorized entering into a twenty-five-year purchase power agreement with Northbrook Energy for the 10.6 megawatts of hydro generation at the Pinnacles' facility in Patrick County, Virginia.  The City is finalizing the FERC license transfer to Northbrook Energy and staff anticipates closing on the property before the end of the year.  Pinnacles will continue to be a local source of energy and help save on rising transmission and capacity charges.
Staff recommends that City Council authorize the City Manager to enter into American Municipal Power's (AMP) Agency Designation Agreement, which will allow AMP to manage the revenue meters associated with the Pinnacles Hydro Facility in Patrick County, Virginia.  AMP will bill the City for any electric generation produced at the facility.



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