HomeMy WebLinkAboutMemo - Mail Packet - 08/12/2025 - Memorandum from Travis Walker re Consideration of Land Lease with Platte River Power Authority (PRPA)
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Memorandum
Date: August 7, 2025
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
From: Travis Walker, Light & Power Director, Light & Power, twalker@fcgov.com
Subject: Consideration of Land Lease with Platte River Power Authority
On August 19, 2025, staff will be proposing to City Council an ordinance to lease City-owned
land to Platte River Power Authority (PRPA) for the installation of a utility-scale 5MW battery
energy storage system (BESS). This project supports renewable energy goals and will benefit
electric service reliability for the Fort Collins community.
Background
PRPA, the City-owned wholesale power generation and transmission provider, is investing in
utility-scale battery storage in each of its four owner communities as part of its commitment to
improving reliability and maximizing renewable energy generation.
The City has identified a tract of land within the City-owned parcel where the Overland
Substation site is located at 401 S. Overland Trail 80521. This is an ideal site for placing battery
equipment and integrating it with the existing electric utility infrastructure.
Docusign Envelope ID: 2880B51B-6023-4B3B-A825-2034769C6324
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Overland Substation Site – 401 S. Overland Trail
Because PRPA is a non-taxable public entity, it cannot directly benefit from federal tax
incentives. To address this, PRPA will sublease the land to Encore Redevelopment who will
leverage these incentives.
This proposal:
Enhances local energy resilience and grid reliability.
Supports the City’s Strategic Plan Goal: Economic Health (ECON 2) Deliver City utility
services in response to climate action objectives and opportunities and targeted
reliability and resiliency levels and make significant investments in utility infrastructure
while communicating and mitigating cost impacts to the community where possible.
Docusign Envelope ID: 2880B51B-6023-4B3B-A825-2034769C6324
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Supports the City’s Strategic Plan Goal: Environmental Health (ENV 1) Implement the
Our Climate Future Plan to advance the City’s greenhouse gas, energy and waste goals;
reduce air pollution; and improve community resilience.
Leverages grants and private sector investment to fund storage project infrastructure.
Utilizes City property for a beneficial public utility purpose.
Additional details will be included on the AIS.
Development of the site will require the elevation to be built up appx. 3 to 4 ft. to match the
existing substation elevation.
While the battery system will be owned and maintained by a private entity the project has direct
and long-term benefit to our system reliability and a future PRPA virtual power plant.
Next steps:
This item will be scheduled for Council consideration on August 19, 2025.
CC: Ralph Campano, Manager, Real Estate
Coy Althoff, Director, Grid Operations & Engineering – Light & Power
Docusign Envelope ID: 2880B51B-6023-4B3B-A825-2034769C6324