The City of Centralia will be looking at installing solar energy fields at some of their facilities to control electric costs that are expected to double when a new contract takes effect in February.
The Vice President of Procurement for A-G-E Jordan Haarman is recommending the city approve a three to four year contract at its next meeting that will bring costs down some over the open Ameren rate, but would still double the city’s current $240,000 electric bill.
In the interim, Haarman wants to continue working with city staff on identifying potential locations for solar installations. He said there would be no cost for the city to construct the solar arrays.
“Right now if that model is like a third party private ownership would own the system. Take advantage of the tax incentives. Sell the power generated by the solar array back to the city directly feeding into the water plant, city hall wherever it could go. The rates behind the power purchase agreements are as cheap as 2 & 3 cents per kilowatt hour locked in for 25 years.”
Haarman says that compares to the 8.5-cent rate the city is likely looking at under its new long term contract and well under the 14-cent open rate Ameren is currently charging to those not under some type of contract. He reports the solar arrays could be on line as soon as the end of next year or the spring of 2024.
Haarman noted while natural gas rates have come down slightly, which could help bring some electric price relief, the higher electric prices are expected to remain due to the shortage of clean energy to replace coal plants going off line.
The Centralia City Council honored two employees for 20 years of service. They are Police Sergeant Gary Denton and Fire Captain Mike Gelsinger.
