Iola City Council members were nearly unanimous in agreeing to purchase a pair of used generators that will add to the citys ability to produce electricity if and when necessary.
They were much more split at times, heatedly so as talk then pivoted on whether to enter into a solar-powered project with Westar, eventually pushing off the decision for a couple of weeks.
The energy issues took center stage at the Councils regular meeting Tuesday.
Council members voted, 7-0 with Councilman Daniel Mathew absent, to spend $1,111,250 with High Plains Power Systems LLC for a pair of diesel-fired Caterpillar generators, each of which is capable of producing up to 2 megawatts of electricity per hour.
The plan is to use the generators only in case of emergency. The true benefit is that it adds to Iolas generating capacity.
Currently, Iolas capacity requirement is roughly 28 megawatts per hour, while the city only has enough equipment through its existing natural gas and diesel generators to produce 22.5 megawatts.
To maintain its status as a partial-requirement electric utility and remain eligible for cheaper electric rates through Westar Iola for the past decade has had to spend about $100,000 annually from Chanute and Sabetha for those communities excess capacity.
For years, the city discussed eventually installing new generators, projected to cost about $10 million to $12 million for a 10-megawatt project, before agreeing in recent years to instead look for used generators.
The generators offered by High Plains were built in 1996 and used at an AT&T plant in Dallas. They were eventually replaced with new generators, making them available on the open market.
Iola City Administrator Sid Fleming said his original hopes were to purchase a third generator as well from High Plains four were for sale but two of the generators were sold to another customer while the city was drafting its specifications.
The units will be installed at the citys power plant in Bassett, where old generators had been removed in 2013. The building still offers an ideal location. The system would be designed so that a third generator could be added at a later date.
The generators cost $800,000, with another $311,250 to pay for High Plains to install the units and associated equipment.
The city has $2.35 million in its coffers allocated for adding electric generation to the citys portfolio, which should allow commissioners to act quickly if and when a third generator is made available.
COUNCIL members found themselves at odds when discussing the costs and potential benefits associated with entering a solar project with Westar.
The utility giant is proposing construction of a solar plant capable of generating about 2.7 megawatts per hour on a plot of city property west of Russell Stover Candies.
Westar would take advantage of state tax breaks, with Iola paying a slight premium over what customers are paying today for natural gas-powered electricIty, with the option of then paying $3.7 million in a lump sum after seven years to take ownership of the solar panels.
