The Kansas City Board of Public Utilities has signed a 20-year agreement to purchase 25MW of wind energy from a project that developer OwnEnergy will build in the state.
Financial terms of the fixed-price deal
were not made public, although BPU estimates it will save ratepayers an average
of $900,000 per year over the contract life..
The utility says that electricity will
start flowing from the Alexander Wind Farm in October 2015.
“We are pleased about adding this
renewable source of energy to our generating mix – it is important to our
future, and wind is among the least-cost renewable energy resources,” says BPU General
Manager Don L. Gray.
With addition of the PPA, BPU will have
wind energy equal to 10% of its peak demand and 22% of its peak in renewables. This
exceeds the state’s renewable energy standard which currently requires electric
utilities to have at least 10% of their peak demand from renewable resources
through 2015, 15% in 2016 and 20% beginning in 2020.