Tuesday, July 29, 2014 • LMUD to purchase solar power

Publisher’s note: This story originally appeared in the Tuesday, July 29, 2014, edition of the Lassen County Times.

Although both sides see some potential risks, the Lassen Municipal Utility District and HL Solar LLC entered a power purchase agreement for solar photovoltaic power.

The agreement, which is set for 30 years, helps the district meet the California Renewable Portfolio Standard which has state utility providers getting about 33 percent of total procurement from eligible renewable energy sources by 2020, according to the California Public Utilities Commission.

The agreement, which was passed unanimously Tuesday, July 22, with director Jess Urionaguena absent, has the district paying $113.80 per megawatt hour for the first contract year through the 19th year and $71.50 per megawatt hour for the 20th through 29th contact year.

Some directors questioned the high cost of the product and wondered if it caused a higher risk for the utility company.

“What’s bothered me from the beginning of this is … it is expensive and it is costing our customers … we have to have an extreme discipline,” said board member Jay Dow.

According to Keri Richards, business officer manager, it is not really known how the high cost for renewable power will affect the charge per kilowatt-hour at this point since ground has not even broken at the site. However, she said the district tries to balance legal obligations and their customers.

Additionally, the district’s legal representative Gene Chittock said the risks were there, and unknown factors both sides may come across throughout the upcoming years.

“Based on the governmental policies that we’re under and the guidelines we’re directed to follow, I think it is a good step to meeting those guidelines and requirements,” said Chittock.

While the cost raised some concerns, some of the directors were happy that the project was long-term.

While the actual construction of the solar photovoltaic facility is a while away, the plant, which will be located near Wendel Road in Wendel, California, will have about 13,000 photovoltaic panels.

“HL Power has been a member of the community for many years, although Greenleaf just assumed owner of the plant in 2010 … despite the fact that it’s clearly an arm length business relationship, we feel like we’re an integral part of the community and serving the needs of the customers here,” said Greenleaf president Hugh Smith.