SNOW HILL – An agreement with a Virginia company on a new solar venture is expected to save Worcester County $3.7 million in energy costs during the next 20 years.
The Worcester County Commissioners this week agreed to approve a negotiated Power Purchase Agreement (PPA) with WGL Energy. The agreement will enable the county to purchase solar power at a rate of 6.4 cents per kilowatt hour for a 20-year period.
Bill Bradshaw, county engineer, said the WGL Energy proposal was the best of the three the county received.
“It’s a financially strong company and they had a low cost proposal,” Bradshaw said.
With guidance from consulting firm CQI Associates, the county issued a Request for Proposal (RFP) in August in an attempt to find a company interested in supplying solar power to Worcester County. Because the county does not own a piece of property suitable for a solar array, the RFP called for proposals that would not be built on county land.
Bradshaw said the county received responses from three companies — WGL Energy, SunEdison and Solar City. SunEdison, as it did earlier this year, presented a proposal for a Snow Hill solar setup. Solar City put forth a proposal for a site in Pittsville while WGL Energy proposed a site in Church Hill. Best and final offers were requested from Solar City and WGL Energy following a review of the initial proposals and the stipulation that North American manufactured equipment be used.
Bradshaw said multiple factors led Worcester County’s electric procurement committee to recommend an agreement with WGL Energy. The company will provide power at a fixed rate of 6.4 cents per kilowatt hour for 20 years. In addition to the cost benefits, WGL was deemed to be a financially stable company capable of bringing the project to fruition.
“They had a site we felt was able to get permits with Delmarva Power,” he said, explaining that the location of the solar array didn’t matter as long as it could tie in to the Delmarva Power system currently serving Worcester County.
Bradshaw said the county currently purchased power at a rate of 8.1 cents per kilowatt hour. Savings from switching to solar at 6.4 cents a kilowatt hour should amount to $162,182 in the first year. Savings are expected to reach $3.7 million during the next 20 years.
With the commissioners’ approval of the PPA, Bradshaw said the necessary contracts would be signed and the permitting process would begin. Solar power delivery to Worcester County should begin in the fall of 2016.