Memorandum
Date: June 23, 2026
To: The Honorable Brad Rasmussen, Chair, Lake County Board of Supervisors
From: Benjamin Rickelman, Deputy County Administrative Officer
Subject: Consideration of the Microgrid Incentive Program Agreements and FLASHES Reimbursement Agreements
Executive Summary:
The Microgrid Incentive Program (MIP) is a PG&E ratepayer-funded program, originating from Senate Bill 1339, designed to support projects that deliver enhanced resilience to targeted populations. Funds are disbursed on a milestone-based reimbursement schedule against eligible project costs, and the project must be capable of operating in island mode for a minimum of 24 consecutive hours. Lake County's MIP projects would fund the predevelopment of Trane's Firemain Linked Auxiliary Supply/Hydraulic Energy Storage (FLASHES) Hartley and Lucerne projects, multi-use renewable energy, pumped storage hydro, microgrid, and firefighting assets that would be developed adjacent to the Northwest Regional Wastewater System and located primarily on County land. The MIP projects are scoped by Trane, aimed at "de-risking" the project for a potential investor/project developer.
FLASHES comprises two co-located projects: the 10 MW Hartley facility and the 20 MW Lucerne facility. The system would use surplus or off-peak generation to pump water into elevated storage and then release it through turbines to generate electricity during periods of peak demand, with the stored water simultaneously serving as a dedicated firemain supply for wildfire response. To advance FLASHES through predevelopment and validation, the County has negotiated Development Reimbursement Services Agreements with Trane for approximately two years. Under that agreement, Trane will perform nine categories of services across both sites, including real estate options, civil, mechanical and electrical engineering feasibility, hydrologic studies, and the FERC Notice of Intent process. Trane would work with the County on...
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