The fixed panel solar array is being proposed by Encore Redevelopment of Burlington. The $850,000 system would be installed by Encore Redevelopment. The panels would be owned by Encore Redevelopment and the town would receive a 10 percent discount on municipal power purchased from the system. After six years, the town is expected to buy the system for $250,000.
The town would have to sign a power purchase agreement with Encore Redevelopment before the project could go forward. That agreement would explain the terms of the electricity purchase and the terms of the town buying the system. The town would also be responsible for replacing the system inverter approximately every 10 years, at a cost of up to $30,000 each, once Moretown owns the system.
TO THE GRID
The proposed system would generate 150kW of electricity per year. At current rates that equals about $20,000 to $25,000 worth of energy per year, if sold directly to the grid.
Moretown Energy Committee member Karen Horn said that the energy committee met last Thursday, June 3, to discuss the project. Horn said there was no recommendation from the energy committee to the town yet. The Moretown Planning Commission is not in favor of the project.
GENERATE REVENUE
"The town has a fiduciary responsibility to the residents in this town to find ways to convert our limited landfill money (which will be ending) and put it into other projects that will generate income for the town in the next 50 years. It's a good thing in and of itself. We passed a Town Meeting ordinance against Vermont Yankee; it's a good way to put our money where our mouth is and generate revenue," Moretown Select Board member David Van Deusen said.
Horn said, "There are going to be other opportunities down the pike that aren't investment driven and I think we should stay open to that."
Encore Redevelopment representative Chad Farrell was present at the June 7 select board meeting and also attended the energy committee's meeting last week. Farrell told residents and town officials that the proposed system takes advantage of incentives only available to the private sector.
FAIR MARKET VALUE
"Yes there are operation and maintenance costs after the initial fair market value deal is consummated, there is some insurance that would be required to be carried and there is the inverter replacement," Farrell said.
Farrell said that there is an unprecedented convergence of opportunities and incentives that "won't be around for long."
Van Deusen said that the deadline to submit applications to the Vermont Public Service Board, which approves the projects, is July 15.
"There is no harm in inviting Encore to do a pre-feasibility study. We would not have any binding obligation to Encore, but we would ask them to identify a suitable site as we have found that the leach field behind the school is not a suitable site; we'd also ask them for a basic understanding of the business model and projection of energy savings and revenue," Van Deusen said.
In addition, he said the town could consider "a memorandum of understanding with Encore that would be non-binding if we thought the project deserved going forward."
Van Deusen also said that there then would be time for more public hearings and a townwide vote, should the select board decide to move forward.
ACCURATE NUMBER
"All we're asking for would be a memorandum of understanding that says that the town is somewhat committed to having us take a look, do a pre-feasibility study and come up with what we think is an accurate number of kilowatts we can install, energy that can be generated, then that's when the negotiations starts. It's all speculation at this point," Farrell said.
At this week's meeting select board chair John Hoogenboom said, "This is all so premature. It's in the hands of the energy committee; it's not just a select board decision. There's a process and to jump at the first one that comes down the pike is pennywise and pound foolish."
Van Deusen said, "I understand that the majority of the select board is not interested in moving forward with this proposal so I'd say that there is no rush for the energy committee, but you should absolutely keep looking into it."
DISAPPOINTED
"I'm disappointed in this outcome; the town over the last few years, for some good reasons, has thought nothing spending $160,000 fighting the quarry without having a townwide vote. Now we're faced with a situation where we could invest in green energy and generate revenue after the landfill is closed down and this is moving too fast and we're not going to consider this," Van Deusen continued.
Karen Horn said, "It's a public entity and public entities move more slowly than private ones."
Prior to this week's meeting, members of the Moretown Planning Commission expressed their opposition to the proposal that was initially presented by select board member David Van Deusen who circulated a newsletter to residents outlining the details of the proposal.
QUESTIONED POTENTIAL SAVINGS
In a letter addressed to the select board, the planning commission responded, point by point, to Van Deusen's newsletter, outlining five specific concerns about the proposal. Since the town would be responsible for purchasing the system, the planning commission first asked whether spending $200,000 would require a townwide vote.
The planning commission questioned the potential financial savings should the system be installed. The letter reads, "Paying $200,000 in 10 years to save the town $25,000 does not appear to be a sound return."
The planning commission's letter also outlined concerns about maintenance expenses associated with the proposed system, using the finite landfill dollars which could result in tax increases, as well as the fixed nature of the proposed panels in addition to what they called "technical and political logistics" of the proposal.
"For some examples, where and how does Encore Redevelopment propose to tap in the grid at the nearest point? Are there foreseeable problems with this project on the school's leach field? There was a major issue finding a spot and getting it approved when the school was renovated in the 1990s. There is no other site for septic and the school is restricted as to what it can do in the kitchen because of this," the letter continues.
The letter concludes, "For these aforementioned concerns plus the unrealistic timeline for decision the planning commission does not support this specific proposal but looks forward to coordinating an alternative energy project proposal with the select board and the energy group in the future."
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