Central Arkansas Water will enter into a solar services agreement that will save the utility $7 million over the next 30 years.
The utility's board of commissioners on Friday approved a contract with Scenic Hill Solar wherein the water company will buy solar energy from the company at a rate of 5.1 cents per kilowatt hour. The board voted 5-0 to approve the measure, with one board member abstaining because he was an Entergy employee, utility spokesman Doug Shackelford said.
Scenic Hill Solar will build a 4.8 megawatt DC solar power plant near Cabot. The energy company will provide an estimated 8.2 million kilowatt hours per year. The purchased power will be net-metered against the utility's existing "small service" Entergy accounts and some of its "large service" meters.
Central Arkansas Water uses a substantial amount of power annually, mainly to pump water from Lake Maumelle to the Jack Wilson Water Treatment Plant.
"Our conservative estimate is that this will save us $7 million," Shackelford said. "That money can be diverted to addressing our aging infrastructures."
The board also approved a 20-year solar site lease agreement with Scenic Hill Solar that includes 30 acres of a 73.95-acre piece of land previously acquired in Lonoke County.
"The panels will need to be placed there because right now it's an empty parcel of land," Shackelford said.
Bill Halter, a North Little Rock native and CEO of Scenic Hill Solar, said he is proud to be able to work with Central Arkansas Water.
"This is reflective of a couple of years of hard work," he said. "This partnership between a local business and a government organization will benefit customers, spur economic development, and save money."
The measure still needs to be approved by the state's Public Services Commission, but Shackelford said he expects everything to be in operation by winter of next year.
"This was a good partnership," he said. "It gives an opportunity for Central Arkansas Water to use an emerging technology and be able to use the dollars we save on upgrading our infrastructure."
Last month, the Little Rock Water Reclamation Authority entered into a solar service agreement that it says will save the utility $2.7 million over the next 25 years.
The utility's board of commissioners approved the contract with Entegrity Energy Partners LLC wherein the sewer authority will buy solar energy from the company at a rate of 5.4 cents per kilowatt hour. The energy company will provide an estimated 2.5 million kilowatt hours per year.
Metro on 12/23/2019