Hartford Mayor Arunan Arulampalam is seeking City Council approval to enter into a long-term power purchase agreement for a 2.6-megawatt fuel cell project that city officials say could generate millions of dollars in electricity savings over the next 15 years.
The proposal would authorize the city to purchase electricity generated by a fuel cell system to be developed by Bloom Energy on city-owned property at 85 Edwards St. The city would not own the equipment, but would buy all power produced by the fuel cell at a fixed rate, along with the natural gas used to operate it.
According to the resolution, the cost of electricity generated by the fuel cell would be lower than power purchased from the electric grid. City officials estimate first-year savings of about $359,000, with total savings of roughly $7.46 million over the 15-year term of the agreement.
A separate memo from the mayor’s office cited projected savings of about $8.5 million over the contract period, based on analysis from the city’s energy broker.
The project has secured an incentive through Eversource under Connecticut’s Non-Residential Renewable Energy Solutions program, which allows municipalities to benefit from fuel cell generation without owning the equipment or directly connecting it to all participating accounts. Power generated by the fuel cell would be allocated across multiple city facilities designated as beneficiaries.
City officials said the fuel cell is expected to be online within three years of the contract being signed and would help reduce Hartford’s exposure to high electricity rates while advancing goals outlined in the city’s Climate Action Plan and City Plan.
If approved, the resolution would authorize the mayor to execute the power purchase agreement and related documents needed to complete the deal.
The City Council will consider the resolution at its meeting Thursday evening.
