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City outlines Independence Power Partners PPA, ESA and timeline for multi‑phase Blue Valley redevelopment
Summary
City staff reported executed purchase power and energy services agreements with Independence Power Partners to redevelop the Blue Valley site: Phase 1 will consist of ~15 gas turbines producing ~200–250 MW by Oct. 2027 and Phase 2 a combined-cycle ~850 MW unit targeted by Dec. 2029; the ESA will deliver power for a large data center beginning Oct. 2026 and council will consider capacity contracts in January.
City utility staff told the Public Utility Advisory Board that the city has executed both a purchase power agreement (PPA) and an energy services agreement (ESA) with Independence Power Partners to redevelop the old Blue Valley Power Plant.
"Phase 1 will be 15 small combustion natural gas combustion turbines," the utility presenter said, adding that the first phase will provide "about 200 and around 250 megawatts of power" expected to come online under the PPA in October 2027. Phase 2 was described as a combined-cycle configuration producing about 850 megawatts, with staff targeting December 2029 for full commercial operation.
Staff said the ESA ties this supply to a major data center at the Eastgate Commerce Center, and that the ESA begins earlier than the PPA: "the energy services agreement has us providing power to the data center starting in October 2026," the presenter said. Because of that gap, staff will bring capacity contracts to council in January to cover the October 2026–October 2027 interval.
Officials acknowledged the project involves many moving parts, including fuel supply, grid interconnection and the data center’s on-site switch-yard engineering. Staff also said the city will present draft governance language for IPL — including board size flexibility and member qualifications — to council on Jan. 13.
The board did not take formal action on the contracts at the meeting; staff said they will share charter draft language and contract-related capacity options with the board and council in coming weeks.
