By Emerson Drake
At the recent MID Board meeting that was held Dec.22nd we learned about a new solar venture that might be built on 160 acres of farmland on north McHenry. A major concern for those present was the cost of the power MID was going to purchase from SunPower Corp. a company based in San Jose.
During the public comment period it was learned that MID had entered into a non-disclosure agreement with SunPower regarding the price to be paid for the solar power that was to be generated at the solar farm on McHenry.
When pressed for figures MID's response was that the surcharge was going to be approximately 1.8 to 3.2 cents more than the going rate of brown power, which they priced at .08 cents.But when reminded of a figure they announced at a prior meeting of .12 cents they said that was below they amount they had negotiated for on this new contract.
Lets see, Brown power is at .08 cents , and add in their top end of 3.2 cents, and yet they say it will cost MORE than .12 cents. So what is the truth regarding the total cost of solar power?Why is a publicly owned utility agreeing to a non-disclosed rate that is beyond what they are admitting to the rate paying owners?Why isn't other media in this town questioning the numbers?
Remember that when we start paying anything above .08 cents it will have a direct effect on our utility bills, in other words rates will increase and so will the amount we pay on our electric bills.
SunPower needs the 25 year contract with the MID to obtain their bank loans. And since they're already just leasing the land, and leasing has been a hurdle that MID hasn't been willing to overlook in other solar contracts involving Modesto businesses.
Why is SunPower getting a sweetheart deal from the MID?
