Iola City Council members agree it’s a good idea to diversify the city’s energy profile. How? By adding 3-megawatts of power to the city’s energy portfolio through a solar agreement.
Recently, the Kansas Municipal Energy Association (KMEA) and NextEra Energy entered into a Power Purchase Agreement (PPA).
Through the agreement, KMEA anticipates purchasing up to 90-megawatts of electric energy from a 200-megawatt solar facility called Ninnescah Flats Solar in Pratt County. As a member of KMEA, the City of Iola is eligible to purchase a portion of the energy.
Council member Jon Wells inquired whether Scott Shreve, Iola’s energy consultant, has been informed of the KMEA solar power allocation.
“Can we get his opinion on this since it is an energy concern?” he asked.
City Administrator Matt Rehder noted Shreeve’s opinion has always been that the city should build its own solar farm.
“That’s been shot down twice,” said Rehder.
The most recent proposal that was declined occurred in 2022. 
That proposal from Priority Power was presented to the council by Shreve and included options for a 2-megawatt or 4-megawatt generating plant. It would have utilized about 25 acres of city-owned property west of Russell Stover Candies.
The difference between Priority Power’s solar farm proposal and the KMEA solar allocation mostly comes down to cost.
Priority Power would have paid for all of the construction costs and operated the solar farm for the first five years, and then given the city the option of buying it after five or 10 years.
The cost for a 4-megawatt farm would be about $4.9 million after five years and $3.75 million after 10. A 2-megawatt solar field would cost $2.625 million after five years and $1.96 million after 10. At the time, it was estimated that a 4-megawatt farm could save the city $200,000 a year.
In addition to the cost of buying the farm, the city would have had to pay Priority Power $40 per megawatt hour until it assumed ownership.
The KMEA solar power allocation offers 3 megawatts priced at $50 per megawatt hour, with no escalation in price.
“This is basically getting the same power as what Scott had presented to you without actually building a farm,” Rehder explained. “Our energy profile has always been our decision and this is cheaper than anything that has been presented to us.”
