Energy Commission offers SLO city $3 mil loan to generate electricity

-May 10,2019-

City water utility could be a ‘net exporter’ of renewable power

The California Energy Commission is offering the City of San Luis Obispo a $3 million loan for a 261.4 kilowatt (kW) solar photovoltaic system as well as a 264 kW hydro-electric generation system – both located at the city water treatment plant on Stenner Creek Rd behind Cal Poly.

Screen Shot 2019-05-09 at 1.09.41 PMBy generating their own power at the treatment facility SLO could earn savings of $266,863 annually compared to their current power bill, says a Commission report. Furthermore the loan could be paid back in 11.2 years while the facility generates renewable power for many more years after.

The Energy Commission is expected to approve the loan May 15.

The hydroelectric portion of the project taps water from Lake Nacimiento, 45 miles away, that comes to SLO by pipeline.The city wants to add an inline turbine-generator on the Nacimiento pipeline that delivers an allocation of 5,482 acre feet a year to our kitchen taps. Now that water – that falls from Cuesta Ridge to the city plant, will generate electricity.

Pictured right: SLO will genrate hydro power from pipeline that descends from Cuesta Ridge from Nacimiento. Below:location of water treatment plant near the rail bridge on Stenner Rd.

The proposed energy efficiency project will go to the San Luis Obispo council July 2 for their approval says Utilities Director Aaron Floyd.

In 2017, the City spent over $2 million on electricity. For its part, the Utilities Department spends approximately $1.2 million each year for electricity; one of the largest users being the Water Division. The Water Division treats and delivers an average of 4.9 million gallons of water each day at an annual electricity cost of $625,000.

A “Major City Goal” is defined as the most important, highest priority goals for the City has been to achieve a “net-zero carbon City”, and implementing cost-effective measures. The project will largely meet the goal to cut greenhouse gases at the utility division says a 2018 report.

Extra power expected

That staff report says the reduced energy use created by the proposed efficiencies combined with the energy generated by the identified renewable energy systems will exceed all of the City’s water utility’s current annual electricity consumption by nearly 775,000 kWh or 24%, signifying that the water utility will be a net exporter of electricity.

The water treatment plant is not to be confused with the city wastewater treatment plant at Hwy 101 and Prado, itself going through a planned rebuilding to include renewable power.

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