Pepco refunds, streetlight ownership and new solar farm discussed; energy contract still pending

Staff updated the council on several utility‑related matters: a negotiated Pepco credit that originally was estimated near $87,000, disputes around responsibility for state‑owned streetlights (State Highway Administration), and the city’s recently completed solar array.

Why this matters: utility costs and the potential purchase/ownership of city streetlights could materially affect near‑term operating costs; the solar array offers future savings but staff said those savings are not yet included in the budget because the city lacks a new energy contract priced using actual solar generation data.

Staff said Pepco had negotiated a credit earlier in the fall but that follow‑up discussions with the State Highway Administration (SHA) about which lights are the city’s responsibility have delayed final settlement. The city manager said staff continues to pursue conversation with Pepco and SHA and will seek help from state legislators if necessary.

On the solar project, staff said the array generated its first monthly output (about 55,000 kilowatt hours in the first billing period), which produced lower per‑kWh costs for that supply, but the city has not yet secured a new energy procurement contract because vendors wanted several months of generation data before offering a long‑term price. Staff suggested council could consider redirecting funds currently used for Renewable Energy Certificates (RECs) toward a green initiatives fund once energy contract terms are known.