Streetlights throughout the town will be switched to low-energy LED lighting with no capital costs to the municipality under an innovative deal with a private energy company.
RealTerm Energy, will replace the streetlights in the Town of Minto in exchange for about 87 per cent of the electricity savings.
In addition an estimated $750,000 worth of free lights, the deal, approved by Minto council at the Dec. 17 meeting, will mean about $4,400 annually as the town’s share of electricity savings over the next 10 years. The town has about 790 street lights in its inventory and a staff report presented at the meeting notes the municipality has contemplated switching to LED (Light Emitting Diode) lights for several years.
The report, prepared by CAO Bill White, treasurer Gordon Duff and public works director Brian Hansen, states town staff are approached regularly by LED light suppliers. The Association of Municipality’s of Ontario’s Local Authority Services (LAS) recently provided a presentation to staff regarding the partnership they established in street light technology. LAS are an auxiliary group to AMO that works with municipalities on energy supply partnerships such as bulk purchasing power, natural gas or diesel fuel and selling it back at costs to help moderate commodity increases and save money, the report explains.
“After observing the marketplace for several years, LAS has decided to offer LED streetlights to the municipal market because the technology is reliable, superior, and now very cost-effective. The benefits LAS identify with switching to LED technology are reduced energy costs, improved light quality, less energy consumption, reduced light ‘trespass,’ and improved community look and security,” the report states.
During the 10 year agreement, the town still owns the lights, but RealTerm Energy will provide all the capital to replace the lights, cover all maintenance and repair costs, and guarantee the energy savings. The town will continue to receive its bill from Westario or Hydro One, and continue the area rating assessment to landowners benefitting from the street lights.
The staff report recommends reduced hydro costs and the current capital contribution in the street lighting budget should be allocated to reserves for street light replacement after the 10 year guarantee period for the lights is up.
“Basically, we get a three-quarter-million-dollar project done for no up-front money,” said Duff.
“I think it’s a great opportunity,” said Mayor George Bridge.
Council voted to receive the report and authorized the mayor and CAO to sign a letter of intent with RealTerm Energy for the design, upgrade, installation and maintenance of LED street lights in the Town of Minto.
