Iola is a no-go for solar energy.
Iola Council members Monday night rejected, 6-2, overtures from Westar to build a solar energy plant in town.
Westar would have paid for construction of the plant, capable of producing about 2.7 megawatts of electricity per hour, with Iola given the option of buying the panels after seven years for $3.7 million. The plant would have provided a portion of Iolas daily energy needs.
Council members debated the costs versus the benefits in the form of being able to count itself among the communities taking advantage of green energy sources.
In the end, however, Council members said the costs were too high for such an endeavor.
Councilman Mark Peters noted the solar panels would provide about 7 percent of the citys generating capacity: a drop in the bucket.
He also pointed out the $3.7 million projection to buy the plant isnt the true cost, because Iolans would pay a slight premium for the energy produced from the solar panels over the first seven years, as well as insurance and maintenance and upkeep over the life of the solar plant.
The actual cost, Peters said, was closer to $7 million.
If the plant provided more of the citys generating needs, Peters said hed likely support it.
But if 7 percent is all its going to make, its not going to make any difference for us, not for $7 million.
Councilman Ron Ballard, meanwhile, called it poor financial planning to invest all of the citys electric fund savings into the solar project.
Actually, its pretty prudent financial planning, City Administrator Sid Fleming responded, further elaborating on the $7 million projection.
That projection includes what the city would have to pay for electricity, whatever its source, said Fleming.
When accounting for all costs, including purchase of the plant, the cost to Iolans equates to about $27 per megawatt hour, less than what Iola spent in 2018, which averaged $33 per megawatt hour.
Spending $27 per megawatt over 30 years is a darned good price, Fleming said.
Fleming noted the citys electric fund generated about $1 million in profit in 2018. And with the city purchasing a pair of used diesel generators in May, Iola has about $1.7 million in the bank toward purchase of additional generation.
