Gardner hears KMEA briefing on power supply; NextEra solar PPA proposed to shore up 2026 capacity shortfall
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Summary
Kansas Municipal Energy Agency told the City of Gardner that a NextEra large-scale solar PPA and a possible GRDA extension are the leading options to address an anticipated 2026–27 capacity shortfall; KMEA said the PPA would provide energy without upfront owner capital and targets commercial operation in January 2027.
Neil Damien, who handles power supply for the Kansas Municipal Energy Agency, told the City of Gardner City Council that the city’s current portfolio — including Grand River Dam Authority (GRDA), Dogwood combined cycle, Marshall Wind, WAPA hydro and purchases from the SPP market — will likely leave the city capacity-constrained by 2026.
"So in '26, when we lose GRDA...you might be a little capacity deficient," Damien said, directing the council to a modeled short position and to a set of options staff has prepared.
KMEA presented two broad approaches: continued reliance on purchase-power agreements and ownership options. The agency placed special emphasis on a NextEra large-scale solar purchase-power agreement (PPA) that would allocate roughly 15 megawatts to the city’s members. Damien said intermittent resources typically count for roughly 40–50% of nameplate capacity for planning purposes, meaning a 15 MW allocation would translate to roughly 7.5 MW of claimed capacity for subscribing members.
"This is a project that's located in Pratt County, which is west of Wichita, about 70 miles," Damien said of the NextEra facility, adding that the project is about half subscribed and KMEA would be close to half of that share. He said the current target commercial operation date is January 2027 and that members would pay only for actual production under the PPA rather than carrying capital debt service.
On price, KMEA said the fixed energy price in the PPA is about $50 per megawatt-hour but that, when the bundled capacity credit is treated as an avoided purchase, the effective cost equates to about $36 per MWh in KMEA’s modeling. Damien framed that number against recent market changes, noting energy offers that were formerly in the $25–$33/MWh range have moved above $70/MWh in parts of the market.
Council members pressed KMEA on whether to retain 9 MW of GRDA or model a 4.5 MW allocation. Damien said staff modeled both and recommended 4.5 MW as a baseline for planning, but he emphasized the council could choose to retain 9 MW if it desired. He also flagged market drivers that could push prices higher — including retirement of coal plants, expanding data-center and AI loads, crypto mining and rising EV adoption — while saying near-term gas prices appear relatively stable.
The presentation closed with KMEA saying it will return with a formal solar proposal; Damien said staff plans to present the solar proposal for council consideration at the December 16 meeting.
