Iola City Council members want to see the fine print before deciding whether they’ll endorse a proposed solar field project to add to the city’s energy portfolio.
Council members voted 3-3 — requiring a tie-breaking vote from Mayor Jon Wells — to move forward with Texas-based POW Solar LLC through the planning phase.
The city retains authority to call off the project before any funds are obligated.
While POW engineers will begin designing the solar plant, which would cover a smidgeon of city property just west of Russell Stover Candies, the city will take a closer look at its short- and long-range electric projects, the health of its electric reserves and how much the city’s electric demands will increase with the new Peerless Products plant slated to go online in the near future.
Council members capped 45 minutes of debate Monday with the split vote to move forward POW Solar LLC — the company that would build the solar plant.
Because of the tie vote, Wells cast his vote in favor of going forward with the planning, noting the Council still can decide later whether to approve the plan. Voting in favor were Ron Ballard, Nickolas Kinder. Opposed were Steve French, Mark Peters and Kim Peterson. Members Nancy Ford and Gene Myrick were absent.
“There’s really no downside to moving forward with the investigation part,” Interim City Administrator Corey Schinstock said.
The difference between this solar project, and a similar one the Council rejected in 2019 lies in the costs involved, energy consultant Scott Shreve explained.
The Council will eye two options, the first of which involves paying $1.55 million up front, then paying $650,000 after six years as a buyout and taking ownership of the plant.
“The beauty of this is (POW) would own it,” Shreve explained. “They’ll take advantage of tax credit. The bottom line, instead of you building it and costing you 100 percent of the project, overall you would pay about 80 percent” because the city would essentially be taking advantage of POW’s tax breaks as well.
Shreve estimated the plant would cost about $3.2 million to build, and would be designed for possible expansion.
Unlike the previous solar plant, which would involve fixed solar panels, this grid would involve a tilt system, in which the panels rotate through the day to absorb direct sunlight all day long.
The second option involves financing a portion of the $1.55 million over 20 years and then paying $1.24 million after year six.
In response to a question from Kinder, Shreve estimated the plant could generate electricity for 35 to 40 years, “If not longer.”
“What … I heard last time was you didn’t have money, couldn’t save the money,” Shreve said. “Here’s the opportunity. You’ve got the money, and can make a payment up front and be done with it.”
