CITY OF FERNDALE – HUMBOLDT COUNTY CALIFORNIA – U.S.A.
CITY COUNCIL STUDY SESSION
Location: City Hall
834 Main Street
Ferndale CA 95536
Date: September 17, 2025
Time: 5:00pm
Posted: September 10, 2025
CALL STUDY SESSION TO ORDER – Mayor
REVIEW AND DISCUSS
i. OurEnergy Microgrid Project Update
ADJOURN TO REGULAR MEETING
September 17, 2025
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101 Cooper Street
Santa Cruz, CA 95060
+1 (831) 200-3969
ourenergyco.com
Dated: May 21, 2025
City of Ferndale + OurEnergy
Microgrid Study & Grant Application
Study Session: September 17, 2025
September 17, 2025
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OurEnergy, LLC
CONFIDENTIAL & PROPRIETARY. ALL RIGHTS RESERVED. 2
OurEnergy is an engineering, advisory, and infrastructure development company headquartered in Santa Cruz,
California.
With a significant focus on commercial, industrial, and municipal-scale renewable energy, we’re additionally
experts in water, green building and integrated civil
infrastructure.
We serve clients globally, with staff, offices and
collaborators in multiple international markets and
throughout the US.
Noteworthy projects presently underway in Northern
California include the City of Oroville, The Baylands in San Mateo County and the California DMV Headquarters
campus, Sacramento.
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MIP Grant Goals
CONFIDENTIAL & PROPRIETARY. ALL RIGHTS RESERVED. 3
● Increase electric reliability and resiliency in communities with higher risk of electrical outages ● Extend back-up energy resources for critical services and infrastructure ○ e.g., public safety, hospitals, water treatment, emergency refuge shelters ● Reduce power outage impacts & disruptions for: disadvantaged and vulnerable communities (DVCs) ○ Low-income households
○ Individuals who rely on power for medical needs
○ People with other Access and Functional Needs (AFN)
● Reduce greenhouse gas (GHG) emissions through deployment of clean generation technologies added as part of the microgrid development
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Additional Prospective Benefits
CONFIDENTIAL & PROPRIETARY. ALL RIGHTS RESERVED. 4
● Remedy or hedge against PG&E energy supply/distribution limitations ● Remedy or hedge against future infrastructure upgrade costs ● Deliver economic benefits, cost controls
● Lay the foundation for modular expansion
● Cultivate a pathway for increased energy independence September 17, 2025
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Microgrid Incentive Program (MIP)
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6 Eligibility
To be eligible, must meet:
● One requirement in section A
● One requirement in section B
● All the Technical Eligibility Requirements,
which OurEnergy will satisfy.
○ Meet the eligibility requirements of
the Community Microgrid Enablement
Tariff (CMET)
○ Serve a minimum of 24 hours in
Island Mode
○ Interconnect on a distribution line that
is at 50kV or below
○ Satisfy emission standards
requirements
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Preliminary Schedule Milestones*
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TASK MILESTONE DATE
Preliminary Preliminary Discussions (no obligation), including meet w/ RCEA Spring 2025 Preliminary Confirm Interest (no obligation) 5/21/2025
Preliminary Schedule Initial PG&E Consult By 5/30/2025
Preliminary Engage Initial PG&E Consult… go/no-go June 2025 0 Notice to Proceed (NTP)* | Kickoff Task 1: Discovery June 2025
0.1 Request / Schedule PG&E Technical Consults (fixed deadline) By 7/15/2025 1 Discovery/Fact Finding Report* | Start Task 2: Consultations July - October 2025 2 PG&E Consultations Report* | Start Task 3: Application Q3 - Q4 2025 3 Application Submitted* By 12/17/2025
*Subject to modification, based on NTP, Discovery & Consultations September 17, 2025
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8 Proposed Microgrid Boundary
The full EEL RIver 1103
Circuit
● Encompasses towns
surrounding Ferndale,
adding benefits to local area
● Would help underground
high fire threat areas in the
southwest
● Considering reducing the
site. Soliciting input on
areas that are lower priority
● Soliciting input on best
places for solar and
batteries.
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9 Key Critical Facilities in Microgrid
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10 Questions & Feedback?
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101 Cooper Street
Santa Cruz, CA 95060
+1 (831) 200-3969
www.ourenergyco.com
[email protected]
Renewable Energy & Sustainable Development: From Concept to Completion September 17, 2025
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Ferndale MIP Questions & Answers - 8/12/25
Questions from City [Answers from OurEnergy in blue]
1. What might be the minimum for a solar field, the maximum? ○ Roughly 3 acres is the minimum and 15 acres is the maximum total for the project. This range comes from the RCEA requirement for solar projects to be within 1 to 5 MW for their feed-in tariff.
2. Can project funds be used to purchase property?
○ The grant funds wouldn’t provide for property purchase but potentially, investors may be able to acquire or lease property. OurEnergy has several owner/operator investors we plan to reach out to for investment funds.
3. How might multiple uses be allowed with a solar field? Hours of sunlight (South is blocked by trees and hills)? Possibilities? How can we sell the benefit to the land owner? Can they still graze animals on the solar field? Or can it be used for parking? ○ In the case of a ground mounted solar field, some grazing animals can work symbiotically with the solar arrays, eating down weeds that would otherwise need to be mowed, this is common practice now in the solar industry. Certain provisions can be taken depending on the grazing stock. Goats can be problematic and may eat the wiring, so they should not be in close proximity to the wires, but animals like sheep and cow can be symbiotic. Certain crops may also be applicable under the arrays. See this report published by UC Davis outlining multiuse possibilities.
○ There are many possibilities for the solar array locations, including rooftops of farm buildings, ground mounted arrays, carports (allowing for parking under them) etc.
○ Locating the solar sites is very important and we will take into account community perception, potential aesthetic concerns and optimal performance. Our modeling software will assess the hours of sunlight, weather and sources of shade to determine the actual PV system output and best locations for solar arrays. ○ Yes, a landowner could enter into a long term lease agreement, where they are paid for a land lease or potentially their property, or a portion of it, could be purchased. They will also benefit from resilience from the microgrid as well, where they will have power in many circumstances when the PG&E grid goes down.
4. What possible costs might the City incur through the conclusion of a project? A PG&E video with input from RCEA mentioned be aware of the need for project capital and awareness of long term debt. Potentially does a successful grant not cover all costs? ○ For the grant application process, the City will only incur up to $25,000, less the amount of City hours spent in the application process, all of which will be reimbursed by PG&E once they determine it meets the grant requirements. Long term costs to the City, if a grant is awarded and the project is developed, can be September 17, 2025
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minimized through the partnership with a private owner/operator of the microgrid assets. These potential costs will be defined and explained to the City before a commitment is made. If desired, the City could have little to no involvement other than coordination for City and public facilities to be participating in and benefitting from being included in the project.
5. Was this a project the City could ask for bids on to put the application together? ○ Yes, the City could have asked for bids from other contractors. The deadline to choose your contractor was on July 15, 2025. OurEnergy reached out to Ferndale because we have strong ties in Humboldt county and wanted to help the City become aware of, explore and hopefully benefit from the program. The City elected to sole-source the grant application work to OurEnergy. The intent of the application grant is for entities like the City to have a low financial burden for spearheading the effort with the assistance of a company like OurEnergy.
6. If citizens conclude, in the study submission phase, that they don't want a solar field because of cost, view interruption, political views etc. what happens, any cost? ○ During the grant application phase and prior to signing a Grant Agreement, if the City elects to not submit an application, it will not be eligible to receive the application reimbursement ($25,000), and will be out the costs incurred up to the time of stopping work on the pursuit of this (up to $25,000 depending on the billable time). If the City submits a compliant application, it will be reimbursed the $25,000, with no commitment to move forward with the proposed microgrid design.
○ After the grant application phase, if the City is awarded a grant to build the microgrid and signs the Grant Agreement, it will enter into the Study Phase. At this point, a letter of credit will need to be secured. OurEnergy will work with the City to determine who should take on responsibility for the letter of credit. If during the Study Phase, the City decides it doesn’t want to move forward with the project, then the grant funds that were paid out during the Study Phase will need to be paid back to PG&E. There are no additional fees or penalties. ○ During the grant application process OurEnergy will solicit City feedback to design the microgrid to meet the City and community member goals, with community feedback planned during a study session on August 20, 2025.
7. Who owns the property and equipment at the conclusion of a project? ○ There are options here. The City may take an ownership interest in the land and/or microgrid assets, or participate in more of a passive stakeholder role. It is up to the City to decide with insights from the study provided by OurEnergy.
8. In the preliminary view of OurEnergy what would be the ideal size for a project in Ferndale?
○ This is currently being studied and we will present our findings in the coming months. From our early discovery process, we are currently envisioning a project that covers either the entirety of the Eel River 1103 circuit from Fernbridge to Centerville and all of the town of Ferndale. Another option is some portion of that circuit that includes as many critical local facilities as possible, while fitting the project size within RCEA’s feed-in tariff parameters of 1-5 MW of solar.
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9. If a project were completed and energy generated sent back to the grid, who would benefit?
○ The primary [financial] beneficiary would be the owner of the microgrid assets.
Secondary [resilience] beneficiaries would include all those with electric service within the microgrid area.
○ The City could potentially benefit from increased tax base or indirect revenues from the project.
10. What would give Ferndale an advantage in approval of an application? ○ The grant applications are scored by adding points based on defined criteria and then dividing those points by the requested amount of the grant from PG&E. To give Ferndale an advantage we’ve defined some key scoring criteria to target below.
■ Design a large microgrid that will provide benefits to more residents/facilities and thus increase the grant score as a result. ■ Low Income Customers: Increase the number of residents on the low income PG&E CARE and FERA programs.
■ Number of Critical Facilities: Ensure there are at least 3 critical facilities in the microgrid to maximize the points in this criteria.
■ Location Outage Risk: Expand the microgrid to include areas toward the coast that are defined as high fire threat to add additional benefits to the local area and score more points.
■ Island Duration: Ensure the microgrid is large enough to provide backup power for multiple days, increasing benefits to the community as well as scoring higher with the grant parameters.
○ A large ranking advantage will come if we minimize the amount of funds we’re requesting for the grant. We will reach out to our investor contacts to solicit proposals for the City to review for partial funding of the project so we can decrease the requested grant amount, which will have a significant impact on the score.
11. Would it make sense for City Hall to employ a person as the liaison for this project and could they be paid by project funds?
○ OurEnergy will carry the majority of the grant application requirements, so we don’t anticipate this will be necessary. We will work with Jay, Skip and Kris to get input. If the City would like to take on an operational role, in the case that a grant is awarded, then it may make sense at that time to hire an additional person.
12. What should the Council, acting as watchdogs for the City, be absolutely aware of with this project? Positives and negatives.
○ Positives:
■ Some significant amount of distributed energy resources will be developed in and near town, enabling electrical resilience during grid disruptions and natural disasters.
■ The need for electrical infrastructure upgrades will be assessed and implemented, if applicable, increasing the safety of the grid in Ferndale and surrounding areas.
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■ Ferndale land owners may receive financial benefits if investors would like to lease land for solar and battery assets or purchase portions of their property.
○ Negatives:
■ Upon signing a microgrid operating agreement, the City will enter into a 10-year agreement with PG&E. PG&E will own the isolation gear and controllers. The City (or whoever you name as operator) has to maintain the solar and battery system, send in 2-year test reports, and follow PG&E’s playbook whenever there’s a fire, weather event or other grid issue. Each year there’s a cost‑of‑ownership charge for PG&E hardware (low‑five‑figures range which drops as it depreciates). The City can get out early if it:
● Give notice, shut island mode off.
● Pay PG&E either a buy‑out on the leftover hardware value or keep paying the annual cost‑of‑ownership till the 10 years are up. ● PG&E can also claw back a slice of the cash grant if the City exits before the 10‑year mark, but only for the part tied to the remaining term / unfinished milestones, not the full award.
■ Certain perceptions and risk around safety and fire associated with solar and battery power systems deployed in/near town.
■ Visual impact of project assets.
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Questions from OurEnergy [Answers from City in green]
13. What is the area north of Ferndale and south of the river mostly used for? ○ The area towards the north is mostly farmland (including a few large dairies) with minimal residents. This area experiences flooding.
14. Where is the wastewater treatment plant located and other key City infrastructure? Can we get the address?
○ Sewer Facilities located on Port Kenyon Road between Market and California, near what is called Arlynda. Plant is on south side and pond on north. ○ Address: 606 Port Kenyon Rd, Ferndale, CA 95536
15. Where is the City water coming from? Can we get the address? ○ Water company is Del Oro Water.
○ Main pump station on East Van Ness: 1400 Ambrosini Ln, Ferndale ○ There’s a reservoir up Wildcat/Petrolia Road: 48 Francis Street, Ferndale ○ And up shop on Eugene Street on backside of Russ Park: 995 Eugene Street, Ferndale
○ Riverside Water is a small company on west side of Ferndale.
16. What does the Riverside Community Services District (790 Centerville Rd) provide? ○ Serves area to west, including Port Kenyon, but does not serve the City of Ferndale.
17. Where are the best options for solar and which landowners should we begin outreach to?
○ Solar generation is most likely I would think. Here are some, and a few outside the box ideas.
■ Humboldt County Fairgrounds (large field), area of Sewer Plant, near Fireman's Park (south field), Christie Fields near water plant on Van Ness (a lowland area), south of Christie Fields, high school parking (cover,) fields west of 5th Street, Polasek dump area (up Wildcat), south side of east-west buildings/barns.
18. Which areas are more likely to have low income residents and medical baseline, AFN/Lifesupport residents?
○ Homes that are baseline are mostly likely on east side, affordable housing area is in what is referred to as Old Navy Housing.
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