Solar Company Says GRU Isn't Fair

Khepera Solar LLC sues, alleging favoritism in the selection process.

An applicant that twice lost in a lottery for capacity in Gainesville's solar feed-in tariff program filed a lawsuit against the city last Tuesday, arguing that Gainesville Regional Utilities showed “impermissible favoritism” and “improper manipulation” of the selection process.

The plaintiff, Khepera Solar LLC, a company set up by Annie Orlando to operate a 100-kilowatt solar-energy system at her business, Atlas Screen Printing and Embroidery, is asking the court to compel the city to give it capacity in the system before the end of the year, when a federal grant for solar projects runs out.

The grant refunds 30 percent of construction costs, a significant chunk for Orlando, who estimated her system would cost $495,000 to build. Without the grant, she said she would not be able to afford to build the project.

“I don't think I'm asking for anything that I don't deserve, in a sense,” she said. “The application process was very clear about what the requirements were, and I met all the requirements. Other people didn't.”

Earlier this year, Orlando and other applicants complained that some contractors, including Solar Impact, that were awarded capacity in the program, which pays system owners for the electricity their systems produce, did not meet the criteria to apply.

For example, Solar Impact's owners had listed various limited-liability corporations for each application but did not register the LLCs until after the application was successful. Their applications were not denied, however, and several were successful in a lottery for 2.7 megawatts of capacity.

In September, the City Commission reopened the process, scheduling another lottery for 1 megawatt of space available to unsuccessful applicants.

Orlando's project again was not selected.

The lawsuit, filed in Alachua County circuit court, contends that GRU in the process ignored its own bidding guidelines, which would have disqualified some projects.

“We have concerns that public contracting not be done by lottery and that exceptions shouldn't be made for some applicants and not others in the process,” said Patrice Boyes, Orlando's attorney. “Going forward we would like to see a level playing field.”

GRU spokesman Dan Jesse said Tuesday that the utility's attorney had not yet received the suit and he therefore couldn't comment on the case.

“Since we haven't received anything, there's nothing we can comment about,” Jesse said.

In September, after the City Commission moved to make more capacity available for unsuccessful bidders, GRU General Manager Bob Hunzinger said the process had been “equitable.”

“We recognize that not everyone agrees with that conclusion,” Hunzinger said.

SOURCE: http://www.gainesville.com/article/20111122/ARTICLES/111129829?p=2&tc=pg