In the final pages of The Climate Book, Greta Thunberg writes, “Everyone is needed … no matter where you live” to respond to the climate challenge. In Centre County, Pennsylvania, we see the truth in that. That’s why 12 local governments have aggregated our electricity to explore a power purchase agreement (PPA) with a solar developer. As we near the final stage, it’s important for everyone to understand how we got here, what we have, and what the last steps will be.
In this linked video, Pam Adams (Centre Region Planning Agency, Sustainability Planner) & I walk through the power purchase agreement*. We talk about where this project came from & the benefits of aggregation. Then, we share how the intergovernmental power purchase agreement was formed, structured, & delegated duties. Next, we discuss structure & governance processes & decisions, including voting, representation, how costs would be shared, & the duties of representatives. Importantly, we share what decisions required review from each member’s full boards, an important aspect of good governance.
This power purchase agreement from a solar source responds to public opinion right here at home. Surveys of Centre Region residents and by the Yale Center on Climate Change Communication show that our residents and citizens want us to act on climate change. The project takes real action by generating 29,000,000 kilowatt hours of carbon-free electricity per year, the equivalent of powering over 3,900 homes. That’s 16,000 tons of carbon dioxide equivalent avoided every year. It creates Pennsylvania jobs in a rapidly growing market. In fact, the project will be developed by a Pennsylvania company here in Centre County. Last but not least, it provides financial stability through long-term low electricity rates.
In the final pages of The Climate Book, Greta Thunberg writes, “Everyone is needed … no matter where you live” to respond to the climate challenge. In Centre County, Pennsylvania, we see the truth in that. That’s why 12 local governments have aggregated our electricity to explore a power purchase agreement (PPA) with a solar developer. As we near the final stage, it’s important for everyone to understand how we got here, what we have, and what the last steps will be.
This power purchase agreement from a solar source responds to public opinion right here at home. Surveys of Centre Region residents and by the Yale Center on Climate Change Communication show that our residents and citizens want us to act on climate change. The project takes real action by generating 29,000,000 kilowatt hours of carbon-free electricity per year, the equivalent of powering over 3,900 homes. That’s 16,000 tons of carbon dioxide equivalent avoided every year. It creates Pennsylvania jobs in a rapidly growing market. In fact, the project will be developed by a Pennsylvania company here in Centre County. Last but not least, it provides financial stability through long-term low electricity rates.
In this video, Pam Adams (Centre Region Planning Agency, Sustainability Planner) & I walk through the power purchase agreement*. We talk about where this project came from & the benefits of aggregation. Then, we share how the intergovernmental power purchase agreement was formed, structured, & delegated duties. Next, we discuss structure & governance processes & decisions, including voting, representation, how costs would be shared, & the duties of representatives. Importantly, we share what decisions required review from each member’s full boards, an important aspect of good governance.
Power purchase agreements are new to most people & organizations, including newly elected officials. Therefore, it was important for us to share how the PPA will work. In short, the 12 local governments work with a retail supplier who handles the delivery of the solar project’s power to us while the project developer must produce that power at a 22 MW solar farm located in central Pennsylvania. The retail supplier will also manage any power not covered by the PPA. For example, the State College Area School District has pledged to purchase about 80% of their electricity demand (~14.5 million kWh) from the PPA, with the remainder coming from the traditional grid. That will require the retailer to manage both the PPA’s delivery and traditional grid energy. There are contracts associated with each part of this process.
As public officials using tax dollars, we have had to understand our limitations, manage risks, and use budgetary sense. Our two largest expenditures have been to secure and work with an energy services consultant and to pay for legal review. No individual in the working group nor our municipal, authority, district, or county solicitors have the requisite experience to be able to manage the complexities of a PPA much less one that will provide renewable energy to 12 local governments. While the process of legal review and the back and forth of negotiation can be tedious and irritating, the end result is what matters. Hard things take effort, focus, and persistence. And our project management team has put countless combined hours into this with our consultant. As our consultant said one day, “This kind of time and effort are required to take on climate change.”
What’s it cost? We will pay $.046/kWh in the first year for the electricity itself. With ongoing fees and settlement, the first year will cost between $.064 and $.069 per kWh. A member organization’s rates for 2025 will be $.0735 per kWh. Comparing those prices and all things being equal, the PPA would generate between $124,000 and $263,000 in year one compared to the dirty grid using that 2025 rate. As a school board director, I see those savings as a precious way to save to money and preserve staff and services.
We wrap up by sharing what’s next. In the coming weeks, local boards and their solicitors will have time to review and ask questions before we go to final votes.
As the 2023 climate talks made clear, we must “transition away from fossil fuels in energy systems, in a just, orderly and equitable manner.” That’s what we are doing. We are accelerating the adoption of renewable energy, responding to public demand for climate action, and avoiding financial risks by securing low predictable rates for the future.
As a school board member, I know that action on climate change matters so much for young people. My son and I talk about it. Students in State High’s Environmental Club have spoken with me about it. When we talked about how much power we would commit to the PPA last year, students came out and spoke in favor of placing as much power as we could into it. They are like the kids who have been striking for climate for the last several years. They are trying to make sense of their lives in the climate-altered world. They are looking for us—their parents and leaders—to take care of them, to lead, and to do what we can to provide a more just and sustainable future. Taken all together, this is democracy in action.
As Greta Thunberg said at the U.N. in 2019, “The eyes of all future generations are upon [leaders].” I see them. My son’s children is among them. So are yours.
Please watch. Please share. If you are an elected official in our group, vote “Yes.”
*I am a Director on the State College Area School District, where I am on the Facilities and Grounds Committee. I have also served as both Chair and Vice-Chair of the Solar Power Purchase Agreement Working Group (SPPAWG). The facts stated here are the facts. The final two paragraphs following, “As a school board director,…” are my opinions and not those of the Board or the SPPAWG.
Peter Walks for Democracy 