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CL- 2071 New Business   Item #:   A.    
City Council Regular Meeting
Meeting Date: 03/19/2019  
Subject:    Consideration of Revised Whitmell Solar Project Terms
From: Jason Grey

COUNCIL ACTION
Business Meeting:     03/19/2019
SUMMARY
Turning Point Energy has requested that the City terminate the previously negotiated purchase power agreement and interconnection agreement for the ten megawatt Whitmell solar project, in order to separate them into (2) five megawatt projects, to meet Virginia Department of Environmental Quality (VDEQ) requirements.   VDEQ's criteria requires a detailed project review for solar farms larger than five megawatts.  They have requested that Turning Point Energy split the project into (2) five megawatt solar farms under the project companies TPE Irish Road Solar, LLC., and Whitmell Solar, LLC.  This will assure that the solar farm is constructed by the original deadline of May 2020.  This does not change the expected amount of generation or the original terms previously negotiated in October 2018.
BACKGROUND
Staff evaluated approximately a dozen possible solutions for the 2021 power supply replacement needs.  Several solar and natural gas responses were considered compared to current and forecasted market prices.  Solar generation was the lowest cost solution, mainly due to the federal investment tax credits private developers can leverage.  In order to take advantage of a 30% federal investment tax credit, a prospective solar developer would need to have a project under construction by December 31, 2019.  The estimated generation for the Whitmell solar farm is approximately 22,000-megawatt hours per year.  This equals to be approximately 2% of Danville's system load.
RECOMMENDATION
Staff recommends Danville City Council approve entering into a purchase power agreement for five megawatts of renewable solar power with Turning Point Energy-TPE Irish Road Solar, LLC., and five megawatts of renewable power with Turning Point Energy-Whitmell Solar, LLC., to be constructed within the Danville Utilities service territory as recommended by the Danville Utility Commission.

Attachments
TPE Irish Road Resolution
TPE Whitmell Solar Resolution

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