City, Xcel cut deal on electricity
A backup generator at Persigo Wastewater Treatment should help energy provider Xcel deal with high energy demands typically seen during the hot summer months.
Grand Junction city councilors on Wednesday unanimously approved entering into an agreement to purchase the generator and use it for a program with Xcel. The city calculated that with Xcel’s reimbursement of $105,000 a year, the generator will be paid off in seven years. The city will continue to receive the annual payments from Xcel for as long as the program continues.
According to the agreement, Grand Junction will agree to put Persigo off the energy grid for up to 60 hours a year, during times at Xcel’s discretion, and allow Xcel to use the energy Persigo doesn’t use.
“It’s a pretty attractive payback on the capital operation,” said Dan Tonello, wastewater services manager at Persigo.
The vendor that submitted the winning bid, PowerSecure of Boulder, will sell the generator to the city for $735,572. The only other bid was an offer to provide the service for $1.36 million from Grand Junction-based Sturgeon Electric Company.
The city would earn the annual reimbursement credit by enrolling in an Xcel program called the Interruptible Service Option Credit.
The city must have the system operational by May 30 to be counted in Xcel’s program.
A total of $600,000 was budgeted toward the project in 2013. By awarding the project, the city will have to allocate the additional $135,572 from this year’s budget.