New Prague Utilities Commission plans $20M local generation facility expansion

November 04, 2024 | New Prague City, Scott County , Minnesota


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New Prague Utilities Commission plans $20M local generation facility expansion
In the heart of New Prague, city officials gathered under the warm glow of the council chamber lights to discuss a significant opportunity for the community's energy future. The Utilities Commission presented an ambitious plan that could reshape how the city generates and manages its power supply.

Currently, New Prague boasts 17 megawatts of local generation capacity, a resource that has proven invaluable during transmission outages. This local facility, operated under contract with power supplier Simpa, not only ensures reliable energy for residents but also supports four full-time jobs. However, as the demand for renewable energy sources like wind and solar increases, the city faces a pressing challenge: a shortage of dispatchable generation, which can be relied upon regardless of weather conditions.

To address this issue, Simpa has proposed a 20-year capacity contract that would allow New Prague to expand its generation facilities. This expansion is not just about meeting local needs; it also presents an opportunity for the city to enhance its emergency power capabilities. The estimated cost for this new project could reach upwards of $20 million, but the potential benefits are substantial. Once operational, the facility could generate over a million dollars annually in revenue for the city.

The proposed site for this new facility is near the West substation, an area already designed to accommodate such a project. The Utilities Commission plans to seek council approval for a refunding resolution and the future sale of an electric revenue bond, which would be largely funded by the contract with Simpa. This strategic move aims to ensure that New Prague can maintain its commitment to reliable energy service, especially in light of recent storms that left neighboring areas without power for days.

As the meeting concluded, the council members were left contemplating the implications of this project—not just for the city's energy independence, but for its economic vitality and resilience in the face of future challenges. The path forward promises to be a pivotal chapter in New Prague's ongoing story of growth and sustainability.

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