LYNN — The city’s chief financial officer and City Council are at odds over a 20-year solar contract that could save the city $5 million in energy costs.
Michael Bertino, the city’s CFO, has recommended that the city enter into the state’s Solar Massachusetts Renewable Target (SMART) program, a long-term program to promote cost-effective solar development, which rolled out in November.
But several city councilors said they felt pushed to make a decision and wanted to explore other options before entering into a lengthy contract.
The deal in question is with BlueWave, a community solar developer based in Boston that has built a number of projects in National Grid’s territory. If Lynn were to subscribe to BlueWave’s Community Solar program under SMART, it would be locked into a 20-year commitment. The city would receive renewable energy credits from BlueWave on its National Grid bills and would be able to purchase those credits at a 15 percent discount, according to BlueWave senior director of business development David Wells.
The clean energy would be generated at a “community solar farm” built by the company in western Massachusetts, which would generate power that would be sent to National Grid, Lynn’s utility.
The projected savings over that 20-year period for the city ranges from $4.55 million to $5.15 million, with an estimated minimum annual savings of $234,000, according to a presentation from BlueWave.
The partnership allows National Grid to reach its renewable energy goals, Wells said.
Bertino recommended the proposal to the City Council on Tuesday night, saying it was a way for the city to participate in purchasing renewable energy without any capital investment.
But City Councilors Buzzy Barton and Dianna Chakoutis pushed back, saying they weren’t given enough time to review the proposal and were not comfortable voting on it.
Bertino said he submitted the proposal a month ago and warned councilors that if they didn’t act quickly on signing up for the program, spots could fill up and the city would miss out on the chance for savings.
The program is expected to generate about 220 megawatts of energy for National Grid, and most has already been subscribed to other customers.
“The window is closing fast to participate,” Wells said.
Councilors questioned the merits of BlueWave, expressing skepticism about the guaranteed savings and tight deadline, and opted to table the vote.
“I think we all need the opportunity to review this,” said Ward 2 Councilor Rick Starbard. “I’m kind of skeptical of the company that says ‘take it this minute or it’s over.'”
But City Council President Darren Cyr said on Thursday he’s had time to speak with councilors since the meeting. He was skeptical at first, but has been assured by the city’s law department and Inspectional Services Department that the BlueWave and the program is legitimate and the panel is no longer questioning its merits.
The discomfort from the City Council, he said, is the feeling that their “backs were being put up against the wall” with having to make a decision on the program with no time to review the proposal.
“It’s still a possibility that it could be (approved), but we just want to make sure we explore all avenues before we sign a 20-year contract with someone,” Cyr said.
Cyr said the process could include issuing a Request for Proposals to solicit other energy companies to make sure the city gets the best deal.
Bertino’s job is to save the city as much money as possible, and he looked at the proposal as an opportunity. But the council wants to take that a step further and explore other options.
“If we lose out on any (savings), it’s just because we had too many other things going on and we want to make sure we’ve covered all the bases,” Cyr said.
Bertino could not be reached for further comment after Tuesday’s City Council meeting.
