NJBIZ recently highlighted DeCotiis, FitzPatrick & Cole’s Green practice. In particular, the DeCotiis green practice recently helped put together a power purchase agreement to potentially save Atlantic City more than $450,000 in energy costs. To date, the green practice has negotiated more than 100 power purchase agreements that save public and private entities money and invest in clean and renewable forms of energy.
You can read the NJBIZ article below:
Solar installation will save Atlantic City $450K over 15 years
April 27, 2011
By Martin C. Daks
Atlantic City expects to save more than $450,000 in energy costs during the next 15 years, thanks to a power purchase agreement it signed with a solar power company.
The Teaneck-based law firm DeCotiis, FitzPatrick, Cole & Giblin LLP was hired as special energy counsel to help the city hammer out a contract with Standard Solar Inc., a Rockville, Md., firm that will design, install, operate and maintain the gear, according to DeCotiis partner Ryan J. Scerbo. He said the firm also represents Atlantic City in other matters.
The project, which will power the municipality’s public works building, is slated to be completed by the end of November.
Under the terms of the power purchase agreement, Atlantic City won’t have to lay out any capital funds for the solar project, according to Scerbo. Instead, Standard Solar will own the system for 15 years, and will sell the renewable electricity to the city for 10 cents per kilwatt hour during the first year.
“The project will have a useful life of more than 30 years,” Scerbo said.
Many people see deals like these as a service project, he added, “but we made sure there was a performance bond for 100 percent of the construction costs, to ensure that the project will be built.”
The public works building currently uses 1.6 million kilowatt hours a year, at a cost of $245,572.12.
The solar system will generate 829,000 kilowatt hours of electricity in the first year, or about 51 percent of the facility’s total electric use. It could save the city up to $50,373 in the first year of the agreement, and $454,611 over 15 years, according to DeCotiis.
Scerbo said the firm’s green practice group worked out power purchase agreements at more than 100 public and private facilities last year, and “we’re currently working with municipalities and counties across the state on similar projects.”