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Council approves short-term capacity purchases with NextEra and Evergy to bridge Blue Valley gap
Summary
Council adopted several second-reading ordinances authorizing capacity agreements with NextEra and Evergy to cover projected Southwest Power Pool capacity needs until the Blue Valley plant comes online; officials said contracts are pass-through and will not affect rates.
The council on Jan. 20 approved multiple ordinances authorizing short-term capacity agreements to cover the period between June 2026 and the expected online date of the Blue Valley generation facility in October 2027.
Ordinance 26-002 authorized a 12-month capacity agreement with NextEra Energy Marketing LLC for an estimated combined 57.8 MW (summer) and 70.3 MW (winter) of Southwest Power Pool-accredited capacity and an estimated cost of $5,467,000. Ordinance 26-003 authorized a separate four-month NextEra capacity purchase projecting 100 MW summer capacity. Ordinances 26-004 and 26-005 authorized two capacity purchases with Evergy Kansas Central Inc. for projected summer capacities of 73 MW and 37 MW and an estimated $3,000,723 for one of the agreements.
Assistant city staff explained these are pass-through agreements tied to existing power-purchase agreements and electric-service arrangements; there is an offtaker in place and staff said the contracts should not affect residential rates. Staff also said off-ramps exist in the contracts if an offtaker disappears, and that the agreements are intended to avoid higher penalties from SPP for failing to provide required capacity.
All four ordinances passed by roll call votes recorded as 7-0.
