SNOW HILL – County leaders agreed last week to a two-year contract extension with WGL Energy to give the company more time to complete its solar project.
Worcester County was prepared to terminate its purchase power agreement with WGL Energy in August, as the company had notified officials of potential delays and costs increases associated with the solar project approved in 2015. Based on the advice of the county’s solar procurement committee, the Worcester County Commissioners voted Dec. 6 to approve a two-year contract extension with the company.
“The two-year extension gives them substantial time to deliver,” said Bill Bradshaw, a county engineer. “In the interim, we can continue to get competitive rates.”
In 2015, in an effort to save money, the commissioners approved a contract with WGL Energy to purchase solar power at a rate of 6.4 cents per kilowatt hour for a 20-year period.
Bradshaw said the county sent a notice of termination of that power purchase agreement to WGL Energy in August because the company had advised Worcester County of delays and cost increases. The company hasn’t been able to secure a connection agreement with Delmarva Power to deliver the promised solar power to Worcester County facilities.
In response to the termination agreement Bradshaw said the company came back with an amendment — essentially an extension — to the power purchase agreement that would give WGL Energy more time but would not increase costs for Worcester County. Bradshaw said that until the company got the system up and running, the county would be purchasing energy at 6.9 cents a kilowatt hour.
Bradshaw said the county’s solar committee recommended approval of the extension because the 6.4 cent rate promised in the power purchase agreement was significantly lower than other available rates.
“The 6.4 cents is the bottom of the market,” Bradshaw said. “We’re recommending to preserve that bid.”
Commissioner Joe Mitrecic said he wasn’t sure WGL Energy would be able to secure the necessary connection with Delmarva Power.
“I don’t feel confident it’s going to happen,” he said.
When asked what the company’s chances of success were, Bradshaw said he thought there was at least a 50 percent chance the system would get up and running.
“In the interim, we are getting pretty good rates,” he said.
The commissioners voted 6-1, with Mitrecic opposed, to approve the two-year extension.
