STAFF REPORT
City of Lancaster
CC 7
10/8/2024
TN
Date:October 8, 2024
To: Mayor Parris and City Council Members
From: Jason Caudle, Chief Executive Officer, Lancaster Energy Subject:Approve Amendment No. 1 to the Program Management Agreement for Lancaster Energy Solar and Battery Storage Program
Recommendation:
Approve Amendment No. 1 (Amendment) to the Program Management Agreement (Agreement) between the City of Lancaster (City) and authorize the City Manager or his designees to execute all documents and make any non-substantive changes necessary.
G.C. Section 84308: No
Fiscal Impact:
Under the terms of the Agreement, in connection with the required development services, the City receives a fee of $0.40 per watt installed, resulting in revenue of $3,040,000 per 1000 homes. The Amendment allocates $0.05 per watt installed from this fee for additional services to be performed, reducing the revenue by $380,000, to a revised revenue of $2,660,000 per 1000 homes.
Background:
On October 25, 2022, the City Council approved a set of agreements for the Lancaster Power Choice Solar and Battery Residential Program. The City, Participate Energy, and Tesla developed the Lancaster Energy Power Choice Program, which provides developers and existing homeowners with a zero-up-front cost option to install solar and batteries for energy cost savings, backup, and participation in grid services.
The Program Management Agreement provides for services to generally be provided by the City. These services include marketing and outreach to customers in the Lancaster Energy service territory to promote the program and encourage program participation. The Amendment modified the existing scope of services to add services to be performed by Participate Energy 1 7
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that strengthen and augment the marketing and outreach services provided by City staff. These additional services will be performed under the guidance and direction of City staff.
Per the Amendment, compensation for the services will be $0.05 per watt installed for each system that has reached operational status. This fee will be subtracted from the current Agreement fee of $0.40 per watt installed that reached completion and operational status. The average system is 7.6 kilowatts, or 7600 watts, for approximately $380 per home.
Attachment:
Amendment No. 1