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Areas of patchy fog early. Sunshine and clouds mixed. High 68F. Winds light and variable..

Showers this evening then thundershowers developing overnight. Low 56F. Winds ESE at 10 to 15 mph. Chance of rain 80%.

Fort Madison officials are looking at going solar and will consider options at tomorrow’s 5:30 p.m meeting of the Fort Madison City Council.

Fort Madison officials are looking at going solar and will consider options at tomorrow’s 5:30 p.m meeting of the Fort Madison City Council.

Fort Madison officials are looking at going solar and will consider a plan to do so at Tuesday evening’s meeting of the Fort Madison City Council.

The main option mirrors what Lee County Supervisors did two years ago. It consists of a private company, Red Lion Renewables, installing and owning all the solar panels and equipment. In return, the city would agree to purchase the electricity from Red Lion for 30 years.

In his report to the council, City Manager David Varley states the purchase price would be lower than what the city is now paying per kilowatt.

“One of the benefits is that a private company can take advantage of the solar tax credits and then pass some of those savings onto the city,” Varley states in his report. “Also, the city does not have to worry about operation and maintenance costs or damage to the panels because we do not own the panels and appurtenances.”

Further, Varley says this plan means the city will not have to borrow or incur debt to switch to solar generated electricity. Instead, it is paid through the city’s monthly electric bills.

The plan calls for solar panels to be installed at nine city buildings: City Hall, the Water Tower, Ortho Way Sewer Booster, Riverview Drive Sewer Booster, Avenue G Water Booster, Sheriff Station Water Booster, Airport Office, Fort Madison Public Library, and Shopton Park.

Valley says the panels for Shopton Park are to be ‘gifted” to the city.

He says that switching to solar energy at these nine locations will save the city $20,000 per year, and $1.7 million over the next 30 years.

There is also an option where the city purchases the equipment after 15 years, which could increase this savings to more than $2 million over the 30-year period.

“Because of the tax credits, the city could not ‘buy out’ the contract until year 6. If that occurred, the purchase pricewould be $764,531,” states Varley.

He says this plan is a “quick and easy way” for the city to begin using solar energy for some facilities without going into debt to purchase the equipment.

The agreement calls for the city’s cost per kilowatt to increase 2.5% per year after the first year, however Varley says the starting price is less than what the city is paying now, and the savings is calculated under the assumption, based on national averages, the rate the city is paying its current provider will increase 4% per year.

Another option is for the city to borrow the money and purchase the equipment, however the city would not be eligible for the tax credits. The city would also have to hire and pay a solar consultant to handle the specifications and the city would have to go through a formal bid process which will result in a reduction in the city’s savings and a delay in converting to solar energy.

Varley is recommending the council discuss the proposed Power Purchase Agreement with Red Lion that has the company installing and owning the equipment and the city agreeing to purchase electricity from the company.

The arrangement is basically the same as what Lee County Supervisors approved two years ago. The agreement was originally with Michael Mohrfeld of Sunshine Power LCC, but a change in financing transferred the agreement to Red Lion Lee County Solar LCC in January of 2000.

Mohrfeld installed the panels that are owned by Red Lion and the county agreed to purchase its electricity from the company.

A year later, in January of 2021, supervisors learned that on three buildings alone the solar panels, along with lighting upgrades, were saving the county $32,225 annually.

The panels at the Department of Human Services building in Keokuk, the North Lee County Office Building in Fort Madison, and a battery of panels at the Lee County Conservation Building are saving $20,426 annually. Lighting upgrades at the Lee County Jail are showing an annual savings of $10,130, and upgrades at the Heritage Center in Keokuk are doing the same to the tune of $1,669 per year.

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Areas of patchy fog early. Sunshine and clouds mixed. High 68F. Winds light and variable.

Showers this evening then thundershowers developing overnight. Low 56F. Winds ESE at 10 to 15 mph. Chance of rain 80%.

Thunderstorms in the morning will give way to partly cloudy skies late. High 81F. Winds SSE at 10 to 20 mph. Chance of rain 80%.

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