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A resolution approving a power purchase agreement and an interconnection and operating agreement between the Metropolitan Government, acting by and through the Metropolitan Board of Fair Commissioners, and Nashville Electric Service for the interconnection and operation of a renewable energy production facility.
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WHEREAS, the Metropolitan Government (“Metro”) seeks to operate a renewable energy production facility (“solar facility”) on the premises of the Nashville Fairgrounds property to produce renewable energy, advance sustainability initiatives, and generate revenue that can offset operating costs; and
WHEREAS, the funding for the development of the renewable energy production facility was authorized under Resolution RS2024-882; and
WHEREAS, the Metropolitan Board of Fair Commissioners authorized the negotiation and approval of the agreements at its March 10, 2026 meeting; and
WHEREAS, Metro and Nashville Electric Service (“NES”) desire to enter into a power purchase agreement (“PPA”), attached hereto as Exhibit A, under which NES will purchase electric energy generated by the Fairgrounds’ solar facility in accordance with applicable laws and regulations and NES policies; and
WHEREAS, interconnection of the solar facility to NES’s electric distribution system requires compliance with technical, operational, and safety standards established by NES; and
WHEREAS, Metro and NES further desire to enter into an interconnection and operating agreement (“IOA”), attached hereto as Exhibit B, setting forth the requirements necessary to interconnect, test, commission, and operate the solar facility safely and reliably; and
WHEREAS, both the PPA and IOA establish the respective obligations of Metro and NES and together enable the construction, interconnection, operation, and sale of power generated by the solar facility; and
WHEREAS, approval of these agreements supports the Metropolitan Government’s goals related to sustainability, clean energy development, and responsible energy management of public facilities.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That the power purchase agreement between the Metropolitan Government, acting by and through the Metropolitan Board of Fair Commissioners, and Nashville Electric Service, attached hereto as Exhibit A, is hereby approved.
Section 2. That the interconnection and operating agreement between the Metropolitan Government, acting by and through the Metropolitan Board of Fair Commissioners and Nashville Electric Service, attached hereto as Exhibit B, is hereby approved.
Section 3. That this resolution shall take from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Agenda Analysis
Analysis
This resolution approves a power purchase agreement and interconnection and operating agreement between the Metropolitan Board of Fair Commissioners (“Metro”) and Nashville Electric Service (“NES”) for the connection and operation of a solar energy production facility.
The power purchase agreement (“PPA”) and interconnection and operating agreement (“IOA”) establish the respective obligations of Metro and NES and together enable the construction, interconnection, operation, and sale of power generated by the solar facility. The development of the renewable energy production facility was funded through Resolution RS2024-882.
Power Purchase Agreement (“PPA”)
The PPA provides that Metro would sell to NES all energy generated by the solar facility. Metro’s billing account would be credited monthly for all electric energy received and purchased by NES at the monthly price per kilowatt-hour determined by NES in accordance with NES guidelines. Metro would deliver the energy onto NES’ grid at a single point of interconnection. NES would install and maintain a meter to assess the quantity of energy delivered to the NES grid.
NES would retain all rights to environmental attributes and renewable energy credits associated with energy purchased by NES. Metro may request it receive NES’s renewable energy credits for the energy produced at the solar facility. After a transfer request is made, NES would have 15 days to respond. NES would be required to transfer those renewable energy credits to Metro within 15 business days. Metro would retire these credits no later than March 31 of the following year, unless both parties agree otherwise.
The term of the PPA begins when all parties enter into the agreement and ends 20 years following the initial delivery and interconnection of the project. The PPA would automatically renew for a single, five-year period, unless either party provides a written termination notice with at least six months notice. Five years after the initial delivery date, NES could terminate the agreement with six months notice should the program be no longer permitted by TVA or other regulatory authority.
Interconnection and Operating Agreement (“IOA”)
The IOA outlines how any electricity developed by the solar facility would be transferred into the NES system. NES has determined the location of the Point of Delivery, where the Metro solar facility would be connected to the NES grid. Metro and NES will agree to connect the Metro solar facility to the NES grid according to the latest guidelines and rules. Metro would design and construct the solar system, and NES would inspect and provide written authorization before the facility is connected to the grid or operationalized.
Metro would be responsible for protecting the solar facility from damage and ensure it is properly inspected, maintained, and tested. Metro would operate the solar facility in a manner that would not harm NES. This operation would include a method to manually disconnect and isolate the solar facility from the power grid. When necessary, NES will perform a system impact study to assess the impacts of any proposed renewable energy on the NES system. NES would have the right to require temporary disconnection to prevent harm to the system or NES employees. NES would have the right, with 48 hours notice, to inspect the equipment to ensure it is operating in line with the IOA.
Any proposed modification to the solar facility would require Metro to submit a new application, including all diagrams and specifications, for review and written acceptance by NES. This agreement would be effective when executed by both parties and would continue concurrently with the term of the PPA or one of TVA’s or NES’s Renewable Programs.
The Metropolitan Board of Fair Commissioners authorized the negotiation and approval of both agreements at its March 10, 2026 meeting.
Fiscal Note: Nashville Electric Service (“NES”) will purchase electric energy produced from Metropolitan Board of Fair Commissioners’ solar-based power-generating facility. The monthly purchase price per kilowatt-hour (“kWh”) is listed on the NES website. According to the current NESolar Connect and NESolar Savings Guidelines, effective October 2024, the TVA Standard Service Total Monthly Fuel Cost (“TMFC”) is $0.07363 per kWh for summer months, $0.04459 per kWh for winter months and $0.05682 per kWh for transition months. Payment will be applied as a credit to the Metropolitan Board of Fair Commissioner’s electric bill. Any solar generation in excess of the load will be purchased at the rate of $0.03069 per kWh for summer months, $0.03197 for winter months and $0.03244 per kWh for transition months. The program guidelines do not limit NES’s right to change or replace its formula to determine price per kWh. The total project cost for the solar-based power-generating facility is $2,348,300 and will pay Lightwave Solar, LLC for the project design, engineering, and installation of the renewable energy production facility. The allocation of $2,400,000 from the FY2025 Capital Spending Plan, CIB number 20FB001, will fund this project.