City of Santa Maria
REAP Solar Project – Council Presentation
Brett Fulgoni – Public Works Director
Sam Angulo – Principal Civil Engineer
Kevin Flanagan – SPURR Director
Sam Zantzinger – ForeFront Power Director
2 Santa Maria City Renewable Strategy
▪ Solar Power Purchase Agreement
• +4.4MW of Solar Across 8 Facilities
▪ No Out-of-Pocket Cost
▪ PPA: 0% Rate Escalation
▪ Save
• Year 1 Energy Savings
• +$12.6 Million over 20 years
▪ Performance Guarantee
▪ Operations & Maintenance Included
▪ NEM 2.0 Legacy Status
▪ Local Labor Prioritized
▪ No Cost for Removal
▪ Projects Completed by April 2025
Assumes 2.7% Annual Utility Energy Escalator, 5% Annual Demand Charge Escalator $97,943,921
$61,617,082
$23,712,733
$12,614,106
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
Before After Solar
Cumulative 20 Year
Solar Savings
Utility Bill Solar PPA Savings
3 4
City of Santa Maria – Pricing & Savings
Assumes 2.7% Annual Utility Energy Escalator, 5% Annual Demand Charge Escalator; Assumes Interconnection Upgrade Costs are included in PPA Rate; PPA Rate for Wells Project excludes cost of future land lease; Lease costs reduced from savings assuming City pays $4400/acre with 3% escalation.
Wells 20 Year savings assumes 2 years where 0 kWh are purchased by PG&E due to lack of Well activity.
Assumes City-owned service improvements at Civic Center and City Wells furnished by ForeFront Site Solar System
Size (kW)
% Energy
Offset
Pre-Solar
Utility Bill
Year 1
Savings
20 Year
Savings
City Wells 1,077 27% $1,750,119 $15,047 $1,863,445
Civic Center 934 78% $478,017 $15,126 $3,180,986
WWTP 923 95% $398,367 $4,483 $2,479,020
City PD 541 89% $216,307 ($3,974) $1,296,750
Transit Dept 467 83% $235,846 $9,209 $1,486,377
Aquatic Center 205 98% $89,021 $11,597 $945,814
James Hagerman Sport 172 100% $99,401 $21,476 $979,863
Minami Park 98 99% $52,232 $3,732 $381,851
Total 4,417 54% $3,319,310 $76,696 $12,614,106
▪ On Site Solar Solutions
• +4.4MW across 8 Sites
▪ No Upfront Cost
▪ PPA: 0% Escalation
▪ Save
• +$12.6M over 20 years
▪ O&M Included
▪ Solar Carport Structures
• Shaded Parking
• LED Light / Security
▪ Local Labor
▪ Sustainability
• Solar Renewable Energy Credits
5 ▪ Summer 2021: City staff engages with SPURR & ForeFront team & ENGIE for solar for evaluation on City facilities.
▪ Summer 2021-Fall 2022: Santa Maria City staff hosts many site visits with both Forefront Power and ENGIE ensuring everyone had the same opportunity.
▪ Spring of 2023 – City Public Works Staff selected SPURR & Forefront to continue forward to City Council Consideration after evaluation proposals from ENGIE & SPURR.
▪ Blended Savings from identical projects using same project assumptions and same escalators over 20 Years
• SPURR & Forefront - $0.1461/KWH
• ENGIE - $.01868/KWH
• Settled Blended Rate – SPURR & Forefront $.1508/KWH
Santa Maria City Renewable Background
6 Engie Proposal Option 1 (Lease Purchase)
Amount to be Financed $12,897,716
Finance Term 20
Estimated Annual Interest Rate 3.75%
Annual Escalation of Electricity Cost 3.00%
Annual Degradation of Solar Panels 0.50%
Annual Escalation of O&M Cost 3.00%
Year
Projected
Electricity
Savings
Estimated
IRA Direct
Payment
Total
Program
Savings
Lease
Payment
Maintenanc
e Cost
Monitoring
&
Verification
Cost
Total
Program
Costs
Net Savings
1 $797,599 $3,288,918 $4,086,516 $928,147 $57,762 $23,064 $1,008,973 $3,077,543 2 $817,419 $0 $817,419 $928,147 $59,495 $23,756 $1,011,398 -$193,979 3 $837,732 $0 $837,732 $928,147 $61,280 $24,469 $1,013,895 -$176,164 4 $858,550 $0 $858,550 $928,147 $63,118 $25,203 $1,016,468 -$157,918 5 $879,884 $0 $879,884 $928,147 $65,012 $25,959 $1,019,118 -$139,233 6 $901,750 $0 $901,750 $928,147 $66,962 $0 $995,109 -$93,359 7 $924,158 $0 $924,158 $928,147 $68,971 $0 $997,118 -$72,960 8 $947,123 $0 $947,123 $928,147 $71,040 $0 $999,187 -$52,063 9 $970,659 $0 $970,659 $928,147 $73,171 $0 $1,001,318 -$30,659 10 $994,780 $0 $994,780 $928,147 $75,367 $0 $1,003,513 -$8,733 11 $1,019,501 $0 $1,019,501 $928,147 $77,628 $0 $1,005,774 $13,726 12 $1,044,835 $0 $1,044,835 $928,147 $79,956 $0 $1,008,103 $36,732 13 $1,070,799 $0 $1,070,799 $928,147 $82,355 $0 $1,010,502 $60,298 14 $1,097,409 $0 $1,097,409 $928,147 $84,826 $0 $1,012,972 $84,436 15 $1,124,679 $0 $1,124,679 $928,147 $87,371 $0 $1,015,517 $109,162 16 $1,152,628 $0 $1,152,628 $928,147 $89,992 $0 $1,018,138 $134,489 17 $1,181,270 $0 $1,181,270 $928,147 $92,691 $0 $1,020,838 $160,432 18 $1,210,625 $0 $1,210,625 $928,147 $95,472 $0 $1,023,619 $187,006 19 $1,240,709 $0 $1,240,709 $928,147 $98,336 $0 $1,026,483 $214,226 20 $1,271,541 $0 $1,271,541 $928,147 $101,286 $0 $1,029,433 $242,108 $3,395,092 21 $1,303,138 $0 $1,303,138 $0 $104,325 $0 $104,325 $1,198,813 22 $1,335,521 $0 $1,335,521 $0 $107,455 $0 $107,455 $1,228,067 23 $1,368,709 $0 $1,368,709 $0 $110,678 $0 $110,678 $1,258,031 24 $1,402,722 $0 $1,402,722 $0 $113,999 $0 $113,999 $1,288,723 25 $1,437,579 $0 $1,437,579 $0 $117,419 $0 $117,419 $1,320,161 26 $1,473,303 $0 $1,473,303 $0 $120,941 $0 $120,941 $1,352,362 27 $1,509,915 $0 $1,509,915 $0 $124,569 $0 $124,569 $1,385,345 28 $1,547,436 $0 $1,547,436 $0 $128,307 $0 $128,307 $1,419,129 29 $1,585,890 $0 $1,585,890 $0 $132,156 $0 $132,156 $1,453,734 30 $1,625,299 $0 $1,625,299 $0 $136,120 $0 $136,120 $1,489,179 Totals $34,933,163 $3,288,918 $38,222,080 $18,562,934 $2,748,060 $122,451 $21,433,445 $16,788,635 7 Engie Proposal Option 2 – 20 Year PPA
Total Solar System Size (kW) 2,798
Power Purchase Agreement (PPA) Term 20
Annual Escalation of PPA Electricity Price 0.00%
Annual Escalation of PG&E Electricity Price 3.00%
Annual Solar Panel Degradation 0.50%
Annual Escalation of Maintenance Cost 3.00%
Year
Projected
Electricity
Generation
kWh
Avoided
Electricity
Cost/kWh
Total Project
Savings PPA Price Annual PPA
Cost Buyout Price Maintenance
Cost
Total Project
Costs Net Savings
Year 1 4,839,798 $0.1648 $797,599 $0.1868 $904,074 $0 $0 $904,074 -$106,476 Year 2 4,815,599 $0.1697 $817,419 $0.1868 $899,554 $0 $0 $899,554 -$82,135 Year 3 4,791,521 $0.1748 $837,732 $0.1868 $895,056 $0 $0 $895,056 -$57,324 Year 4 4,767,563 $0.1801 $858,550 $0.1868 $890,581 $0 $0 $890,581 -$32,031 Year 5 4,743,726 $0.1855 $879,884 $0.1868 $886,128 $0 $0 $886,128 -$6,243 Year 6 4,720,007 $0.1910 $901,750 $0.1868 $881,697 $0 $0 $881,697 $20,052 Year 7 4,696,407 $0.1968 $924,158 $0.1868 $877,289 $0 $0 $877,289 $46,869 Year 8 4,672,925 $0.2027 $947,123 $0.1868 $872,902 $0 $0 $872,902 $74,221 Year 9 4,649,560 $0.2088 $970,659 $0.1868 $868,538 $0 $0 $868,538 $102,122 Year 10 4,626,312 $0.2150 $994,780 $0.1868 $864,195 $0 $0 $864,195 $130,585 Year 11 4,603,181 $0.2215 $1,019,501 $0.1868 $859,874 $0 $0 $859,874 $159,626 Year 12 4,580,165 $0.2281 $1,044,835 $0.1868 $855,575 $0 $0 $855,575 $189,260 Year 13 4,557,264 $0.2350 $1,070,799 $0.1868 $851,297 $0 $0 $851,297 $219,502 Year 14 4,534,478 $0.2420 $1,097,409 $0.1868 $847,040 $0 $0 $847,040 $250,368 Year 15 4,511,805 $0.2493 $1,124,679 $0.1868 $842,805 $0 $0 $842,805 $281,874 Year 16 4,489,246 $0.2568 $1,152,628 $0.1868 $838,591 $0 $0 $838,591 $314,036 Year 17 4,466,800 $0.2645 $1,181,270 $0.1868 $834,398 $0 $0 $834,398 $346,872 Year 18 4,444,466 $0.2724 $1,210,625 $0.1868 $830,226 $0 $0 $830,226 $380,399 Year 19 4,422,244 $0.2806 $1,240,709 $0.1868 $826,075 $0 $0 $826,075 $414,634 Year 20 4,400,133 $0.2890 $1,271,541 $0.1868 $821,945 $0 $0 $821,945 $449,596 $3,095,809 Year 21 4,378,132 $0.2976 $1,303,138 $0.0000 $0 $176,671 $104,325 $280,996 $1,022,142 Year 22 4,356,241 $0.3066 $1,335,521 $0.0000 $0 $0 $107,455 $107,455 $1,228,067 Year 23 4,334,460 $0.3158 $1,368,709 $0.0000 $0 $0 $110,678 $110,678 $1,258,031 Year 24 4,312,788 $0.3252 $1,402,722 $0.0000 $0 $0 $113,999 $113,999 $1,288,723 Year 25 4,291,224 $0.3350 $1,437,579 $0.0000 $0 $0 $117,419 $117,419 $1,320,161 Year 26 4,269,768 $0.3451 $1,473,303 $0.0000 $0 $0 $120,941 $120,941 $1,352,362 Year 27 4,248,419 $0.3554 $1,509,915 $0.0000 $0 $0 $124,569 $124,569 $1,385,345 Year 28 4,227,177 $0.3661 $1,547,436 $0.0000 $0 $0 $128,307 $128,307 $1,419,129 Year 29 4,206,041 $0.3771 $1,585,890 $0.0000 $0 $0 $132,156 $132,156 $1,453,734 Year 30 4,185,011 $0.3884 $1,625,299 $0.0000 $0 $0 $136,120 $136,120 $1,489,179 Totals 135,142,462 $34,933,163 $17,247,842 $176,671 $1,195,969 $18,620,482 $16,312,681 City of Santa Maria Solar Project
Project Cash Flow Analysis - 20-Year Power Purchase Agreement 8 Engie Proposal Option 3 – 28 Year PPA
Total Solar System Size (kW) 2,798
Power Purchase Agreement (PPA) Term 28
Annual Escalation of PPA Electricity Price 0.00%
Annual Escalation of PG&E Electricity Price 3.00%
Annual Solar Panel Degradation 0.50%
Annual Escalation of Maintenance Cost 3.00%
Year
Projected
Electricity
Generation
kWh
Avoided
Electricity
Cost/kWh
Total Project
Savings PPA Price Annual PPA
Cost Buyout Price Maintenance
Cost
Total Project
Costs Net Savings
Year 1 4,839,798 $0.1648 $797,599 $0.1802 $872,132 $0 $0 $872,132 -$74,533 Year 2 4,815,599 $0.1697 $817,419 $0.1802 $867,771 $0 $0 $867,771 -$50,352 Year 3 4,791,521 $0.1748 $837,732 $0.1802 $863,432 $0 $0 $863,432 -$25,700 Year 4 4,767,563 $0.1801 $858,550 $0.1802 $859,115 $0 $0 $859,115 -$565 Year 5 4,743,726 $0.1855 $879,884 $0.1802 $854,819 $0 $0 $854,819 $25,065 Year 6 4,720,007 $0.1910 $901,750 $0.1802 $850,545 $0 $0 $850,545 $51,204 Year 7 4,696,407 $0.1968 $924,158 $0.1802 $846,293 $0 $0 $846,293 $77,866 Year 8 4,672,925 $0.2027 $947,123 $0.1802 $842,061 $0 $0 $842,061 $105,062 Year 9 4,649,560 $0.2088 $970,659 $0.1802 $837,851 $0 $0 $837,851 $132,809 Year 10 4,626,312 $0.2150 $994,780 $0.1802 $833,662 $0 $0 $833,662 $161,119 Year 11 4,603,181 $0.2215 $1,019,501 $0.1802 $829,493 $0 $0 $829,493 $190,007 Year 12 4,580,165 $0.2281 $1,044,835 $0.1802 $825,346 $0 $0 $825,346 $219,489 Year 13 4,557,264 $0.2350 $1,070,799 $0.1802 $821,219 $0 $0 $821,219 $249,580 Year 14 4,534,478 $0.2420 $1,097,409 $0.1802 $817,113 $0 $0 $817,113 $280,296 Year 15 4,511,805 $0.2493 $1,124,679 $0.1802 $813,027 $0 $0 $813,027 $311,652 Year 16 4,489,246 $0.2568 $1,152,628 $0.1802 $808,962 $0 $0 $808,962 $343,665 Year 17 4,466,800 $0.2645 $1,181,270 $0.1802 $804,917 $0 $0 $804,917 $376,353 Year 18 4,444,466 $0.2724 $1,210,625 $0.1802 $800,893 $0 $0 $800,893 $409,732 Year 19 4,422,244 $0.2806 $1,240,709 $0.1802 $796,888 $0 $0 $796,888 $443,821 Year 20 4,400,133 $0.2890 $1,271,541 $0.1802 $792,904 $0 $0 $792,904 $478,637 $3,705,208 Year 21 4,378,132 $0.2976 $1,303,138 $0.1802 $788,939 $0 $0 $788,939 $514,199 Year 22 4,356,241 $0.3066 $1,335,521 $0.1802 $784,995 $0 $0 $784,995 $550,527 Year 23 4,334,460 $0.3158 $1,368,709 $0.1802 $781,070 $0 $0 $781,070 $587,639 Year 24 4,312,788 $0.3252 $1,402,722 $0.1802 $777,164 $0 $0 $777,164 $625,557 Year 25 4,291,224 $0.3350 $1,437,579 $0.1802 $773,279 $0 $0 $773,279 $664,301 Year 26 4,269,768 $0.3451 $1,473,303 $0.1802 $769,412 $0 $0 $769,412 $703,891 Year 27 4,248,419 $0.3554 $1,509,915 $0.1802 $765,565 $0 $0 $765,565 $744,350 Year 28 4,227,177 $0.3661 $1,547,436 $0.1802 $761,737 $0 $0 $761,737 $785,699 Year 29 4,206,041 $0.3771 $1,585,890 $0.0000 $0 $176,671 $132,156 $308,827 $1,277,063 Year 30 4,185,011 $0.3884 $1,625,299 $0.0000 $0 $0 $136,120 $136,120 $1,489,179 Totals 135,142,462 $34,933,163 $22,840,604 $176,671 $268,276 $23,285,551 $11,647,612 City of Santa Maria Solar Project
Project Cash Flow Analysis - 28-Year Power Purchase Agreement 9 Project Cashflows Financial Assumptions
Rate Scenario NEM 2.0 Parameter Value
Solutions Solar Year 1 PPA Rate ($/kWh) $0.1461
Project Portfolio Year 1 Storage Payment ($) $0
Year 1 Savings $45,878 PPA Rate Escalator (%/yr) 0.0%
Cumulative Savings $7,292,714 Utility Energy Escalator (%/yr) 3.0% Payback Period Immediate Utility Demand Escalator (%/yr) 3.0% Solar System Size (KW) 2,960 PPA Term (Years) 20
Storage System Size (KW) 0.0 Solar Degradation Rate (%) 0.50% Year PPA Rate ($/KWH) KWH Generated Historic Utility Bill (without solar) PPA Payment Storage Payment New Utility Bill (with solar)
Post-Solar Total Electricity
Costs (PPA + Utility) Net Savings Cumulative Savings
1 0.1461 5,323,070 1,319,765 777,669 0 496,218 1,273,887 45,878 45,878 2 0.1461 5,296,455 1,359,358 773,781 0 511,105 1,284,886 74,472 120,350 3 0.1461 5,269,972 1,400,139 769,912 0 526,438 1,296,350 103,789 224,139 4 0.1461 5,243,623 1,442,143 766,063 0 542,231 1,308,293 133,849 357,988 5 0.1461 5,217,404 1,485,407 762,232 0 558,498 1,320,730 164,677 522,665 6 0.1461 5,191,317 1,529,969 758,421 0 575,253 1,333,674 196,296 718,961 7 0.1461 5,165,361 1,575,868 754,629 0 592,510 1,347,139 228,729 947,690 8 0.1461 5,139,534 1,623,144 750,856 0 610,286 1,361,141 262,003 1,209,693 9 0.1461 5,113,836 1,671,839 747,102 0 628,594 1,375,696 296,143 1,505,836 10 0.1461 5,088,267 1,721,994 743,366 0 647,452 1,390,818 331,176 1,837,012 11 0.1461 5,062,826 1,773,654 739,649 0 666,875 1,406,525 367,129 2,204,141 12 0.1461 5,037,512 1,826,863 735,951 0 686,882 1,422,833 404,031 2,608,172 13 0.1461 5,012,324 1,881,669 732,271 0 707,488 1,439,759 441,910 3,050,081 14 0.1461 4,987,262 1,938,119 728,610 0 728,713 1,457,323 480,797 3,530,878 15 0.1461 4,962,326 1,996,263 724,967 0 750,574 1,475,541 520,722 4,051,600 16 0.1461 4,937,515 2,056,151 721,342 0 773,091 1,494,434 561,717 4,613,317 17 0.1461 4,912,827 2,117,835 717,735 0 796,284 1,514,020 603,816 5,217,133 18 0.1461 4,888,263 2,181,370 714,147 0 820,173 1,534,319 647,051 5,864,184 19 0.1461 4,863,822 2,246,812 710,576 0 844,778 1,555,354 691,458 6,555,642 20 0.1461 4,839,502 2,314,216 707,023 0 870,121 1,577,144 737,072 7,292,714 Total 101,553,018 $35,462,580 $14,836,303 $0 $13,333,563 $28,169,866 $7,292,714 $7,292,714 $45,878
$1,837,012
$7,292,714
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
PPA Cumulative Savings
Cumulative Savings
Winning Proposal from Forefront
10 ▪ SPURR: School Project for Utility Rate Reduction
• Joint Powers Authority Founded in 1989
• Buying Consortium of 300+ Public Agencies
• Aggregated Procurement for Utilities
▪ REAP RFP: Renewable Energy Aggregated Procurement
• Save time: Streamline Solar & Storage buying process. • Save money: Drive down project pricing.
• Reduce Risk: Improve contract terms and conditions.
▪ REAP RFP Solicitation:
• Multiple different solar & storage project types included. • Specific project includes, excludes, and assumptions. • 30+ Vendor Solicitations, 7 Proposals Received.
• 2021 Contract Extension, Price Reductions Secured
Winner: ForeFront Power
SPURR REAP Program
11 ▪ SPURR = Experience & Success
• Buying Consortium of +300
Public Agencies
• JPA governed by Board of public
agency administrators
• REAP RFP Meets City’s
Piggyback Procurement
Requirements & Exceeds
Government Code 4217
• Used by +70 Cities, Counties,
Universities & School Districts
• Projects completed by
ForeFront prioritize Local Labor
SPURR: School Project for Utility Rate
Reduction
REAP Program
Participants
12 $104B $29.9B
in Total Assets in Total Equity
‘A’ $42.1B 41 GW
Credit Rating – S&P in Revenue Power Assets
Backed by Global Energy Expertise
13 • Santa Maria Airport
• San Luis Obispo County
• City of Ventura
• City of Bakersfield
• Hancock College
• City of Fresno
• County of Fresno
References
City Wells NEM-A – 1,077 kWdc – SAT Ground
Mount
Santa Maria City Hall – 934kWdc - Solar Canopies
Wastewater Treatment Plant – 923kWdc – SAT Ground
Mount
Santa Maria Police Department - 541kWdc - Solar
Canopies
Santa Maria Transit Yard + Well 9S - 467kWdc - Solar Canopies Paul Nelson Aquatics Center – 205kWdc – Solar
Canopies
James Hagerman Sports Complex – 172kWdc Solar
Canopies
Minami Park – 98kWdc Solar Canopies
22 Tree Seedlings – 10 Years Incandescent lamps
switched to LEDs
Miles driven by
average passenger car
96,553 221,315 14,969,326
Tons of waste recycled Acres of Forest in 1 Year Homes Energy Use 2,021 6,963 1,136
GHG Equivalences
8,239,654 kWh of electricity in Year 1