According to reports, that means the city's Electric Department will pay a $100,000 deposit to the private owners of the 7.3 megawatt Winooski One plant.
That deposit would either apply to the purchase price, or be returned if city voters don't authorize funds for the deal.
The full price of the three-turbine facility hasn't been determined.
The department has assessed the year-round power source as a potentially valuable asset, one that would help stabilize city power costs.
Officials said the plant is already connected into the municipal grid, and would incur relatively little transmission maintenance costs.