District outlines solar plan and NEM2 deadline; staff to negotiate PPA for June approval
May 07, 2024 | La Mesa-Spring Valley, School Districts, California
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District staff presented an informational report on May 7 about a proposed districtwide solar program and a potential Power Purchase Agreement (PPA) with a private developer.
Robert cockr, the district’s Executive Director of Business Services, explained net energy metering rules and said the district’s NEM2 applications were submitted before April 15, 2023; constructing and energizing projects by mid‑April 2026 would preserve NEM2 rates and the larger estimated savings associated with that program. “If we are able to get our projects energized by mid‑April of 2026 ... then we’ll have NEM2 energy savings,” he said.
Staff showed schematic layouts that prioritize shade‑structure installations for play fields and parking‑lot carports at many elementary and secondary sites. The district’s solar partner, Forefront Power, guaranteed panel performance and offered a 95% production threshold: if production falls below 95% of forecast, Forefront will provide a monetary credit to the district.
Robert summarized a conservative estimate prepared by the district’s energy partner that showed roughly $40 million in avoided utility costs over 20 years under NEM2; he said that projection would drop by about 40% under NEM3. He noted the savings projection assumes modest utility escalation (about 3% annually) and that the district’s independent energy consultant (Arc Alternative) will review provider data and assumptions as part of contract negotiations.
Board members probed the spreadsheet: one member flagged a wide variance in current monthly bills between sites (one example cited was about $34,000 vs. several $100,000 bills) and asked staff to follow up on apparent outliers. Staff acknowledged those sizing and billing variances and said they would investigate.
Next steps, staff said, include negotiating contract terms with Forefront Power and the district’s counsel and returning to the board with a proposed agreement for approval in June. Staff emphasized that the PPA is structured as no upfront cost to the district; the provider builds and maintains the panels and the district pays a fixed PPA payment over the contract term.
"The PPA payment is flat for the course of the 20 years and that gives the district a way to hedge rising energy costs," Robert said.
The item was informational; no approval was required that night.
Robert cockr, the district’s Executive Director of Business Services, explained net energy metering rules and said the district’s NEM2 applications were submitted before April 15, 2023; constructing and energizing projects by mid‑April 2026 would preserve NEM2 rates and the larger estimated savings associated with that program. “If we are able to get our projects energized by mid‑April of 2026 ... then we’ll have NEM2 energy savings,” he said.
Staff showed schematic layouts that prioritize shade‑structure installations for play fields and parking‑lot carports at many elementary and secondary sites. The district’s solar partner, Forefront Power, guaranteed panel performance and offered a 95% production threshold: if production falls below 95% of forecast, Forefront will provide a monetary credit to the district.
Robert summarized a conservative estimate prepared by the district’s energy partner that showed roughly $40 million in avoided utility costs over 20 years under NEM2; he said that projection would drop by about 40% under NEM3. He noted the savings projection assumes modest utility escalation (about 3% annually) and that the district’s independent energy consultant (Arc Alternative) will review provider data and assumptions as part of contract negotiations.
Board members probed the spreadsheet: one member flagged a wide variance in current monthly bills between sites (one example cited was about $34,000 vs. several $100,000 bills) and asked staff to follow up on apparent outliers. Staff acknowledged those sizing and billing variances and said they would investigate.
Next steps, staff said, include negotiating contract terms with Forefront Power and the district’s counsel and returning to the board with a proposed agreement for approval in June. Staff emphasized that the PPA is structured as no upfront cost to the district; the provider builds and maintains the panels and the district pays a fixed PPA payment over the contract term.
"The PPA payment is flat for the course of the 20 years and that gives the district a way to hedge rising energy costs," Robert said.
The item was informational; no approval was required that night.
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