Independence Power & Light (IPL) has a 20-year agreement to purchase Kansas wind power which would increase the utility's use of wind energy to approximately 13% of its total energy production.
This is a major development for the city utility and a growing commitment to generating power through renewable sources.
Economic analysis projects IPL would save $2.8 million over the 20-year agreement based on a 20-year contract with a fixed price of $33.80 per MWh.
The agreement was unanimously approved May 4 by the Independence City Council. The Public Utilities Advisory Board recommended approval.
The wind turbines are located in Marshall County in central Kansas.
This is a very favorable rate - due in part to a federal Production Tax Creditworth roughly $23 per MWH for the wind project. The federal tax credit is set to expire in 2016.
The municipally-owned Columbia Water and Light reported it was paying between $55.74 and $67.81 per MWh for wind energy it was purchasing in its recent annual report on renewable energy.
Columbia generates 7.22% of its total power from renewable sources. Independence Power & Light - with the wind purchase - will be significantly higher.
The city has another wind power agreement with Smoky Hills II which provides about 5% of the city's current energy production. The second wind purchase agreement would add another 8% energy for wind totaling 13% combined.
Other utilities purchasing power from Marshall Wind Energy include the Kansas Power Pool (25 megawatt share) and the Missouri Joint Electric Municipal Utility Commission (20 megawatt share).
IPL also is currently reviewing several proposals for solar power produced on city-owned property.