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Sunlight Will Trim Lower MUA Power Bill

 

By Jack Fichter

VILLAS — Lower Township Municipal Utilities Authority (MUA) has awarded a second solar panel contract to Cambria Solar of Pleasantville.
It estimates the panels will provide a cost savings on electricity supplied by Atlantic City Electric of $15,000 per month when the project is completed.
The contract is a Power Purchase Agreement (PPA) that includes a 750 kW per hour solar power unit. The MUA has been operating a 50 kW solar unit under a PPA agreement with Calvi Electric of Atlantic City since February of this year, and has been saving an average of $1,200 per month on electric bills.
The new 750 kW unit is similar to the 50 kW unit as MUA spent zero capital dollars for the construction of the units. The 50 kW unit produces electricity at a cost to MUA of zero per kW for electrical power generated by the unit for the next 15 years.
The new 750 kW unit produces electric at a cost to the LTMUA of just under four cents per kW for electrical power generated by the unit for the first five years with an escalation rate to five cents per kW during the 15 year term of the contract, according to Mike DeMarcantonio, MUA executive director.
MUA currently pays Atlantic City Electric Company an average of 14 cents per kW of energy used. Both contracts are for 15 years each, but the units have a life expectancy of 25 to 30 years.
MUA supplied the ground space where the units were constructed at its wastewater treatment plant, 2900 Bayshore Road.
When operational, both solar units will produce almost 1 megawatt of power. MUA plans to reduce their dependency on Atlantic Electric during its operation over the next 15 years.
The MUA property measures over 280 acres. The new solar array will be located next to the treatment plan, in place of some old, non-operating treatment units, said DeMarcantonio.
He said Cambria Solar has one year to begin the project, which will require a number of state permits.
As a non-profit entity, MUA cannot receive carbon or solar credits, but Cambria Solar will be able to sell those on the open market and also receive tax relief.
DeMarcantonio said it is estimated the project will cost Cambria about $4 million. He said the solar array will save the MUA about $15,000 per month and cover 100 percent of the power needs for the treatment plant during daylight hours on sunny days.
The plant currently uses over 900 kW per hour to operate the sewage treatment plant and the solar system will generate that much and a little more.
DeMarcantonio said wind turbines were not right for the property because of its proximity to the county airport.
Despite the size of the MUA property, the state Board of Public Utilities would not allow MUA or other entities to generate power beyond its needs. Unneeded power is sold back to Atlantic City Electric, he said.
The LTMUA routinely reviews daily operations for “green” alternatives, cost savings and efficiency, which results in savings for its ratepayers.
DeMarcantonio said MUA decreased its power demand from 1 megawatt by purchasing more efficient equipment and made other electrical modifications

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