The City Council on Tuesday night authorized a three-year purchase power agreement with American Municipal Power for 20 megawatts of wind energy.
The agreement will offset some of the volatility of the energy market.
Danville Utilities purchases about 10 percent of its energy needs on the daily energy market. Those prices have increased significantly over the last eight months because of factors around the world.
Also, energy needs are growing due to recent economic development announcements. As a result, Danville Utilities eventually will need to purchase up to 17 percent of its energy needs on the daily energy market.
So, Danville Utilities staff recommended the three-year wind purchase power agreement to reduce the market exposure and take advantage of a low-cost resource that will benefit Danville Utilities electric customers.
The contract will start Oct. 1 and end on Sept. 30, 2025.
American Municipal Power (AMP) is the nonprofit wholesale power supplier and services provider for Danville and 132 other members in Ohio, Pennsylvania, Michigan, Kentucky, Virginia, West Virginia, Indiana, Maryland, and Delaware.
AMP issued a bid for energy resources to help its members, including the city of Danville, with rising market prices this winter. The company chose the Avangrid project, the Locust Ridge Wind Project as its preferred project.
In other matters, the City Council voted to:
- Authorize agreements between the School Board, English Construction, and Branch Builds for preliminary design services for GW. High and G.L.H. Johnson Elementary.
- Approve a moral obligation agreement with Virginia Community Capital for a shell building in Cyber Park.
- Authorize a franchise agreement and the granting of a franchise to Doc Brown, LLC for the installation of commercial energy storage facilities, including battery technology, on city-owned property located at 864 Monument St.
- Approve various grants for the arts, senior transportation services, airport maintenance, airport promotion, and rehabilitation of the airport’s south ramp.
- Release about $18,570 in liens and associated costs on a property near Stokes and Jefferson streets to facilitate its transfer to New Bethel Baptist Church for use as a non-profit community garden.
- Support an amendment that would add two members to the steering committee of the Partnership for Regional Prosperity.
- Appoint Deborah Harris to the Danville Community Policy and Management Team as the Danville Public Schools representative.
First readings were held on grants to complete a city-wide preservation plan, a Freedman’s Cemetery project, and a victim/witness assistance program. A first reading is an introductory step required by City Code. The City Council will vote on these matters at its next meeting.