[Editor's Note: This is the first of a multi-part series on the Grant County Commission work session and regular sessions April 17 ad 19, 2018.]

By Mary Alice Murphy

The county has explored using solar energy to save electricity costs on its many county-owned buildings.

The commissioners at their work session on April 17, 2018, heard a presentation from Energy Sources US on how the proposal will solve problems for the county, making energy efficient and cost-effective.

Scott Stevens gave some background data on the company, which is now part of a multi-national organization and has a new name, changed from its former name of Energy Control.

"This is one of our turnkey service projects," Stevens said. "We are looking at LED lighting, energy-efficient HVAC systems. We are coming with comprehensive services. We don't provide project financing, but our proposal has savings guarantees."

He said the opportunity assessment has been completed, and the program development is almost done. Next comes project implementation and measurement verification.

"We made our first presentation in June 2017, and this is the April 2018 update," Stevens said. "The project reduces electrical use by 30 percent, heating fuel of natural gas and propane by 16 percent and water use by 10 percent. The project includes significant building upgrades to impose comfort, functionality and reliability. The solar PV (photovoltaic) is 100 percent renewable. Our investment-grade audit is complete."

Marco Del Piccolo, project engineer, said he had worked with the county Facilities staff, walked through the buildings with them, looked at the utility bills, worked out utility costs and savings. "We believe you will have a 50 percent utility cost savings. How do energy savings translate to dollars? You will save in bulk heating fuel and in electricity costs, each year for $135,000 annual savings."

"What will be done?" Del Piccolo continued. "Lighting energy is 40 percent of your electrical load and you will have 50 percent savings. This building and the Silver Street HVAC systems are at their end of life. We will also replace the Silver Street roof and get rid of the air-conditioning units on the front of the Courthouse. We will get rebates from PNM. We will do a complete rework of the energy control system at the Courthouse, and we will return existing water fixtures."

The new control systems will allow the county to monitor its energy consumption.

Stephan Rank of Energy Sources said he does general oversight of the project. He asked for questions.

Commission Chairman Billy Billings asked who would provide oversight for the county. Stevens said there would be third-party oversight from the Energy, Minerals and Natural Resources Department.

Commissioner Harry Browne asked, if the costs escalate, would the company adjust the project.

"We guarantee unit savings of at least 3.2 percent. If costs go up, savings go up," Rank said. "We guarantee our equipment savings amount."

Browne said the costs would "clearly be higher. Right now, we have a fixed payment."

Rank said the costs could be adjusted each year.

"You are vulnerable to our changing our budget," Browne said.

"If the building use changes, we may need to make adjustments in baseline charges," Rank concurred. "We use accepted standards of control. We guarantee the safety factor. The estimate is based on utility rates rising. What if utility rates don't rise? Our customers are protected."

Browne said last year in the proposal, the company was taking the risk. "Now it's slightly different."

"We take on the performance risk," Rank clarified. "Back to the scope stuff. The online system allows county staff to monitor usage. With the building controls and technology, the county can be proactive in getting ahead of the curve instead of reacting. You have six locations and seven buildings. Most systems will be roof-mounted, although the Detention Center will be ground mounted. The Silver Street building will have one system for each meter. Because of all the stuff already on the roof, we propose a parking system with an overhead solar system at the Courthouse for 520 kilowatts."

Commissioner Brett Kasten asked if roof-mounted were cheaper than ground-mounted.

Stevens said ground-mounted is the most cost-effective. "Roof mounting can be challenging, and the parking canopies are more expensive."

Kasten said he could envision parking canopies for the Sheriff's Department vehicles on the southeast side of the administration center.

Rank said it costs about 30 percent additional for canopies.

He noted if the county doesn't use all the energy created by the solar panels, it will receive 2.5 cents each kilowatt hour from PNM. "You will still be connected to the electric grid." He noted a PPA (power purchase agreement) wasn't as attractive.

Rank said after about 20 years, the panels will be at 80 percent efficiency, rather than 100 percent, but "solar has come a long way."

Stevens said: "Once the solar panels hit 80 percent at about 25 years, they still produce energy."

Browne said he had 45-year-old panels that still produce. "At what point do they stop degrading?"

Stevens said he didn't have the information off the top of his head.

He laid out the costs at $4.2 million for total project costs, with annual energy savings of $135,904. "We will have to defend our numbers to the EMNRD. We are comfortable with the numbers."

He noted the owner would have some contingency built in. "We do the rebates process for the client. We do not do the financing, but Mark Valenzuela is here to talk about that. Charlene (Webb, county manager) and Mark have talked about options. It's going to be a safe ride for you. Our customers find their savings are more, and they find a lot of ancillary benefits."

Billings asked what subsidies are available and from whom.

Stevens said the biggest subsidy is from the state of New Mexico, as it allows clients to determine their choice of contractor, without having to go out to bid. "There are rebates through PNM. We have also helped customers look at USDA grants."

The next article will begin with the presentation by Mark Valenzuela, the county's financial advisor from Hilltop Securities.