Nov. 3, 2004 -

Solar panels to power EDH plant
By SONYA SORICH Staff writer

The addition of solar panels at a wastewater treatment plant could brighten the El Dorado Irrigation District's economic future.

At Monday's meeting, the EID board unanimously approved plans to move forward with a solar panel project for the El Dorado Hills Wastewater Treatment Plant. The 900-kilowatt solar "farm" will consist of 35,200 square feet of solar panels at the plant.

The system is designed to provide supplemental power amid projected statewide supply shortages, as well as the rising cost of electricity.

"This sounds like a win-win," said EID Director Harry Norris.

Efforts to decrease energy costs are driven by the California Energy Commission's recent estimate of a 4 percent power escalation per year. EID spends an average of $270,000 for electricity at the EDH sewer plant.

The EDH sewer plant was selected as a good candidate for the solar panels because of its land availability and access to sunlight. Also, energy consumption for the site is within the program's 1 megawatt per year limitation.

A potential $3 million rebate for the project through Pacific Gas & Electric Co. has expedited the district's plans for the panels. EID received an approval letter from PG&E on Oct. 17. It requires the district to demonstrate project advancement within 90 days.

Assuming that EID receives this rebate, the system would be completely paid off after 12 years, with an internal rate of return of 8 percent.

PG&E offers a rebate of half the capital cost for facilities that install solar photovoltaic systems to supplement power provided from the utility grid.

The state program is based on the concept of net metering. Net metering provides for interconnection with PG&E, in which surplus electricity is fed into the utility grid.

The electricity revenue meter spins forward when electricity flows from the utility into the facility and backward when the solar power plant produces surplus electricity. Excess electricity is banked in the utility grid.

"This is a great project," said Bob Fertini, spokesman for PG&E. "It's a beautiful way to produce energy. In California it is something that is going to be part of our future. It will not go away."

In the summer, the panels at the plant would generate electricity and the excess would be sold back to PG&E. EID authorities estimate the cost savings and net metering credits in the summer will offset expenses in the winter, when the primary source of power to the treatment plant would be PG&E.

"This is retail power that's making a retail exchange," said Todd Lindstrom, director of business development for Sun Power & Geothermal Energy.

EID conducted a preliminary analysis of the project using estimates from Sun Power & Geothermal Energy, Team Solar, PowerLight and Shell Solar. Representatives from these firms were present at Monday's meeting.

Assuming a 50 percent rebate, their estimates indicate a cost range of $3 million to $3.6 million for design and construction.

"It's a great time to take advantage of this technology and all the rebate dollars that are available," said Rick Whisman, major accounts manager for PowerLight Corp.

With Monday's decision, the board added the project to EID's 2004-2008 Capital Improvement Program. The unanticipated project will receive funding from a Deer Creek Wastewater Treatment Plant project that can be canceled.

In view of the project's short time frame, EID staff has recommended a "Request for Proposals" option for procurement. Procurement through this method is usually not allowed, but a statutory exemption exists for renewable power projects in public contracting law.

This option allows a contract to be awarded on factors other than cost, namely contractor experience, type of technology employed, warranties, power capacity and the ability to install panels in a timely manner.

EID is not the first entity to install a solar panel system. Similar systems have been installed for other entities, including the Santa Clara Valley Water District and the Sacramento Municipal Utility District.

Discussion of the solar panels will continue at an EID meeting in December, in which the system's environmental impact is expected to be addressed.

Also present at the meeting were EID Directors George Osborne, John Fraser, Bill George and George Wheeldon.

E-mail Sonya Sorich at ssorich@mtdemocrat.net or call 344-5061.

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