When a 150-megawatt solar power agreement with SunEdison takes effect in 2016, Georgetown will become one of the largest municipally owned utilities in the U.S. to supply customers with 100 percent solar and wind energy, Interim City Manager Jim Briggs said.

The agreement, which was recently finalized, will provide solar-generated electricity to the city through 2041. In 2014 the city signed a 144-megawatt wind power agreement that will continue through 2035.

City Council approved the contract with SunEdison at its Feb. 24 meeting.

“We’ve been working for a while to secure very competitively priced energy for the long term, and we also wanted a commodity that was low risk,” Briggs said, adding that the agreement hedges the city against unknown costs associated with increased greenhouse gas regulations as well as the rising cost of water. “Essentially what we've done ... is locked that price at a very reasonable rate for a fixed period of time.”

Briggs said the city-owned utility was looking to find a competitive fixed rate.

“A lot of people assume we are doing this because they are green and we have some mandated initiative,” he said. “We did this as a part of a business decision. … It truly was a business decision that we are going to be able to take advantage of.”

Briggs said that as prices for other energy generation increase, the city will be positioned with a fixed price.

The contracts are also expected to attract companies looking to use green energy, Briggs said.

“It will absolutely be an economic development tool,” he said. “We are trying to have a greater stewardship. … With this, we are able to offer that. Once we start taking delivery [of this energy in 2016], we can promote our businesses as being green.”

SunEdison announced March 18 it is building a solar energy plant in West Texas that will be operational in 2016.

“Georgetown is an exceptional city, and by going 100 percent renewable they cut down on pollution, save water and enjoy stable energy prices,” said Paul Gaynor, executive vice president of North America Utility and Global Wind, in a statement. “[The city is] able to accomplish all of this without spending a penny up-front with the SunEdison power purchase agreement. Georgetown is a model for other cities that hope to become powered by clean renewable energy.”