Danville City Council voted to enter into a purchase power agreement for wind energy.
Council unanimously agreed during its meeting Tuesday night to authorize the city manager to enter into the three-year agreement with American Municipal Power to buy 20 megawatts of wind energy from the company for $47.75 per megawatt-hour.
The purchase agreement will help to offset for the city some of the volatility of the energy market, Danville Utilities director Jason Grey told council members during the meeting.
“Market energy prices over the last eight months have increased significantly because of various factors around the world,” Grey wrote in a letter to council. “Approximately 10% of the city’s energy is purchased on the daily energy market.”
But the city’s energy needs are growing because of recent economic development announcements that will increase the city’s market exposure from 10% to 17%, Grey wrote.
“It is staff’s recommendation to enter into this three-year wind purchase power agreement to reduce the city’s market exposure and take advantage of a low-cost resource that will benefit Danville Utilities electric customers,” Grey wrote.
The contract will start Oct. 1 and end on Sept. 30, 2025.
American Municipal Power issued a bid for energy resources to help its members, including the city of Danville, with rising market prices this winter, Grey wrote. The company chose the Avangrid project, the Locust Ridge Wind Project as its preferred project.
In other matters, City Council unanimously voted to approve agreements for preliminary design work for George Washington High School and for G.L.H Johnson Elementary School.
The agreement for GW would be between the Danville School Board and English Construction Company for preliminary design of additions and renovations at the school.
The second agreement would be between the school board and Branch Builds to perform preliminary design for a brand new school for Johnson.
Under the respective agreements, the Danville Public Schools system would pay a fixed fee of $2.36 million for design services for the GW project and $883,600 for the Johnson project.
Work to be done at GW includes improvements to the career and technical education building, media center, gym spaces, athletic fields, classrooms and technology infrastructure.
The Johnson project entails a new school building on its current property. Officials believe a new structure, instead of renovations, would be a more feasible option.
Also, council voted to release about $18,570 in liens and associated costs on a property near Stokes and Jefferson streets.
A local pastor, Jesse Swann, hopes to convert the piece of property on Stokes Street to a nonprofit community garden.
The nuisance abatement liens stemmed from the boarding-up and later demolition of a house previously on the parcel that was severely damaged in a house fire.