Summary The City Commission approved a Solar Project Power Sales Contract with the Florida Municipal Power Agency (FMPA) during its March 12, 2018 City Commission meeting. The total FMPA Solar project includes three, 74.5 MW utility-scale solar facilities located in Osceola and Orange counties, with the City's participation at a 9 MW entitlement. FMPA entered into an agreement with Poinsett Solar, LLC to purchase the energy for project partners, including the City of Alachua.
The project has experienced delays due to site conditions, which prevent the solar from going online in mid 2020 as expected. FMPA has proposed an amendment to its purchase agreement with Poinsett Solar, LLC to extend the timeframe for deliverables. The amendment provides for additional time for development of the solar facility in consideration of reduced pricing, and provides for a 20-year term with no extensions.
In order for the City to continue its participation, it is necessary for the City to enter into an amendment with FMPA for its Solar Project Power Sales Contract.
City staff and City consultant WHH Enterprises, Inc. analyzed the project merits under the new conditions and find the terms to be favorable.
It is proposed that City staff finalize an amendment with FMPA to the Power Sales Contract consistent with the terms of the Amended and Restated Renewable Energy Purchase Agreement between FMPA and Poinsett Solar, LLC, which is attached.
This project allows the City to invest in clean, renewable energy, decreasing environmental impacts, while at the same time providing a savings to the City's electric utility customers. Furthermore, the City's energy portfolio is further diversified with solar energy as a new component, providing additional shielding to rate payers in the event natural gas or other traditional energy markets spike.
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