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Brian Steele: Nixa could approve a power purchase agreement as early as April 20.
Brian Steele: Nixa could approve a power purchase agreement as early as April 20.

After delays, Nixa close to solar farm deal

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After a year in negotiations, Nixa’s city council is on the cusp of approving a power purchase agreement with O’Fallon-based solar developer Solexus Development LLC.

Planned for 72 acres owned by Sen. Jay Wasson near the city’s western boundary, Solexus submitted a proposal to council Feb. 5 of last year. At the time, it was dubbed the state’s largest solar farm project.

The sticking point has been the city’s rates for the production of solar electricity.

“We’ve been negotiating that for some time now to make sure that we get the right pricing for the city,” said Solexus President David Bunge. “The idea at this point is that we’ll finalize negotiations on the language of the contract, then the city council will approve it and we’ll commence final engineering on the project.” If the agreement is accepted as proposed, the city could realize an estimated savings from the solar farm of $3.7 million over the life of the 24-year contract.

Solexus pricing presented at council’s March 16 meeting indicates the city could spend an estimated $812,898 on solar energy from the farm this year, a projected first-year savings of $5,526, compared to the city’s planned purchases from City Utilities of Springfield.

If the farm is brought on line in 2015, Nixa would pay a little more than 4.8 cents per kilowatt-hour at an escalating annual rate of 2.25 percent for solar energy, according to the proposal.

Nixa Administrator Brian Bingle said the Solexus agreement was received April 8 and has been submitted for review to the city’s electrical consultant, Springfield-based engineering firm Toth & Associates Inc. Cost reviews by Toth, along with Public Works Director Doug Colvin and city attorney Pat Sweeney, is the last step before making a recommendation to council.

“They’re reviewing the costs to make sure they don’t exceed our current costs with City Utilities,” Nixa Mayor Brian Steele said, adding the review process was mandated by council. “Green power is all fine and good, and we’re happy to have that type of project in Nixa, but we’re not going to do it at an additional cost to the residents.”

Nixa currently purchases electrical power from CU in excess of what it purchases from Southwest Power Administration. Steele said the city signed an addendum to its CU agreement in fall 2014 allowing Nixa to receive as much power as the farm is designed to produce, which amounts to about 20 percent of the city’s overall power usage.

Bingle said the city currently pays CU a demand component of $8.32 per kilowatt and an energy component of 5.5 cents per kilowatt-hour, as a large industrial customer.

“Springfield has given us the authority to purchase up to 10 megawatts generated from alternative fuel sources, in this particular case, solar,” Bingle said. “There’s a cost savings to the city of Nixa, and we certainly appreciate Springfield’s willingness to provide us that opportunity.”

Steele said the savings are broken down into two components, with $1.6 million saved from less purchased power over time and another $2.1 million saved from lowering the peak amount of power Nixa buys from CU.

Solexus developed CU’s nearly 5 megawatt solar farm at 2915 N. Farm Road 209, currently Missouri’s largest, which contributes to the power provided by the utility. Chapel Hill, N.C.-based Strata Solar operates and maintains CU’s solar farm, which came on line in June.

Nixa officials say the Solexus agreement could come before council as early as its next meeting on April 20.

Bingle said the solar farm would tie into the city’s distribution system, the cost of which has been estimated at $290,000.

“Solexus has agreed to contribute $200,000 to the city to accommodate that inter-connection,” he said.

“The city’s electrical department could afford that.”

Upon council’s acceptance of the agreement, Bingle said the next step would be submission of construction plans from Solexus.

“We’re already moving ahead with additional diligence on the project and the site,” Bunge said, noting Solexus would obtain Christian County zoning approval and submit plans for electrical permits as well as state permits for band use and erosion control as required. “We’ve still got a few tasks that we’ve got to complete before we can really break ground.”

Bunge and city officials remain hopeful construction will begin in 2015.

“Our hope and our target is to try and bring the system on line before the end of the year,” he added.[[In-content Ad]]

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