City inks deal with Hydro One to begin generating electricity
“This is a great opportunity for our municipality,” said Director of Public Works Michelle Hendry. “This certainly would not have been possible without a strong commitment from Council and a lot of work and tireless dedication on the part of our staff.”
The agreement will see the City connect to the Hydro One distribution grid and begin generating electricity through the use of methane gas conversion by the newly installed generator.
The electricity generated will be used to power the Water Pollution Control Plant with any excess electricity sold back to Hydro One.
Assuming an energy cost of $0.11/kWh and generation rates of approximately 2.49 million kWh, the City will see a potential energy cost savings of $274,000 annually. Once operations and maintenance costs are factored in, the City expects to realize approximately $100,000 in annual savings as a result of the project.
Under the agreement any excess energy produced by the facility will be purchased by Hydro One at Spot Market rate, which will allow CKL to get compensated at a fluctuating rate between $0.02 and $0.05 per kWh.
“This project not only relates to Council’s strategic priorities but this project is progressive and financially beneficial for the City,” said Ms. Hendry. “We will be able to utilize energy from methane gas to make electricity that would otherwise be wasted.”
Tara Stephen, Acting Waste Management Operations Supervisor said there is still more work to be done before the system begins producing electricity in July.
“With the document signed, it will be forwarded to Hydro One for execution,” explained Ms. Stephen. “The generator construction will be completed and Hydro One will send a technician out to test all the connections, meters and protective devices.”
Once Ontario Hydro signs off, there will be some additional Technical Standards and Safety Authority (TSSA) inspections and approvals that will need to be completed.
“Signing the agreement with Hydro One isn’t the last step in the project, but it is a big step in the right direction,” said Ms. Stephen.
For more information please contact:
Acting Waste Management Operations Supervisor
705-324-9411 Ext. 1133