Resolution authorizing the Executive Director to enter into a Project Rebate Agreement with Centerpoint Energy and to participate in the “Commercial Hybrid Heating Pilot Rebate Program” for Capital Improvement Project 11237; Mankato Orness Plaza Rooftop Unit Replacement.

Adoption of the attached resolution.

The Centerpoint hybrid pilot program is seeking commercial customers that have an interest in advancing potential lower carbon solutions using electric heat pump heating with supplemental natural gas – to maintain efficiency for the coldest days while aiming to reduce overall energy use. As part of this pilot, they are offering rebates/incentives to qualified commercial customers for 40% of the equipment cost ($100,000 maximum) for those who take part in the pilot.  

This associated rebate is for Capital Improvement Project 11237; Orness Plaza RTU Replacement. The project has a total equipment cost of $186,500.00 and an overall project cost of $304,670.00. The City of Mankato meets the requirements to participate in the hybrid rebate program and would receive the allowed rebate of $74,600.00.

Staff recommend authorizing the Executive Director to enter into this rebate program and to submit the program participation paperwork to Centerpoint energy.