NEWS

Despite delays, city to receive full 25-year net metering credit discount from Natick solar project

Posted 7/5/22

By EMMA BARTLETT

At the June 27 City Council meeting, Councilman Robert Ferri asked the Solicitor’s Office for an update on the status of the net metering contract between the city and …

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NEWS

Despite delays, city to receive full 25-year net metering credit discount from Natick solar project

Posted

By EMMA BARTLETT


At the June 27 City Council meeting, Councilman Robert Ferri asked the Solicitor’s Office for an update on the status of the net metering contract between the city and Revity Energy LLC. Revity – a Warwick-based company that develops, finances, constructs and operates renewable energy generation facilities – is the applicant of the Natick Avenue Solar Project that was initiated over two years ago.

While the city solicitor was not present to answer Ferri’s questions, Attorney Robert Murray (who represents Revity) gave council members an update.

Murray provided background information to the agreement, and said the net metering arrangement was originally pursued In January of 2020. Net metering refers to a billing mechanism where solar energy system owners are credited for the electricity they add to the grid. The Board of Contract and Purchase selected Revity’s proposal from eight RFP respondents and on Nov. 5 of that year, Revity and the city signed a net metering finance agreement. Murray said the company had a planned initial operation date of on/before March 31, 2022, and provided a discount rate of 32.5 percent.

Since the agreement, there have been numerous delays in the start of construction. There were individuals in opposition of the project, court appeals made by abutting property owners and a delay in the approval of standard utility pole locations requested by National Grid on Natick Avenue.

The court appeals were the result of the Plan Commission approving the project’s master plan stage. The commission introduced over 100 pages of information to the record and relocated 500 panels after closing public comment and decided not to reopen public comment after more material was added. According to a Providence County Superior Court order on June 24, the master plan approval of the Natick Solar project was vacated; the court remanded that the Plan Commission reopen public comment and give appropriate notice to appellants and other members of the public so they have the opportunity to review/comment on the additions made to the record after the close of public comment.

“Revity has continued to diligently try and bring the Natick Avenue project online,” said Murray. “As some of you may know, on January 14, 2021, Revity made a payment of $100,000 to the City toward the Cranston West Athletic Complex as provided for in the net metering contract.”

Murray said Cranston will still receive the full 25-year net metering credit discount value, the expected building permit fees and real estate and tangible personal property taxes. The company has been working with city officials to explore other opportunities for the city while the court appeals take place. In April 2022, Revity waived the exclusivity of its contract to see if other potential partners would provide some financial assistance in the interim months.

Murray noted one current benefit Revity is delivering to the city is an opportunity with the City of Providence.

“Revity bid on an RFP for some excess net metering credits with the intention of providing the electric savings to Cranston,” Murray said.

The discount rate bid by Revity and awarded to Providence was at 25 percent and Cranston will be allocated $450,000 of net metering credits and receive financial benefit/electrical bill savings of approximately $112,500. Murray added that the existing 25-year net metering credit agreement is not impaired in any way by Providence’s RFP award.

“Cranston has not lost any money because of the delays in the planned operation date for the Natick Avenue Project. Savings were not expected until some time this year and Cranston will get everything it bargained for,” Murray said.

In the short-term, Cranston’s financial benefits will be enhanced by at least $112,500 through the Providence opportunity.

At the June 27 meeting, attorney John Verdecchia said Murray provided the general details to the net metering agreement and if the council were to talk more about the net metering situation, it should be completed in executive session because it gets into the nuts and bolts of the litigation. Ferri said he will bring up the net metering topic again at July’s City Council meeting.

net metering credit, solar project

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