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Council hears update on west-side power plant: excavation underway, building bids planned, operation expected in 2028
Summary
Staff reported excavation and soil correction work started at the west-side generation site; the city expects to bid building construction in November, with a target first-quarter 2028 operation and estimated bonding of $16–$18 million to be paid by a wholesale power contract over 20 years.
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City staff updated the council that site excavation and soil correction have started for a planned west-side power-generation facility. The presentation included site photos, a schematic of the proposed plant building, and a summary of schedule and financing expectations.
Staff said generator sets were ordered roughly a year earlier and that lead times for the equipment are long; the project team expects to put the building out to bid in November with construction starting in spring 2026 and the facility proposed to be operational in the first quarter of 2028. The building footprint was described roughly as 70 by 90 feet and will house four additional generator sets; the city currently operates six units at the existing plant and the new plant will add four.
Bruce said the commission expects to bond the project at roughly $16–$18 million and that payments for the revenue bond will be covered substantially by a wholesale power supplier under a 20-year contract with a group of 17 communities. Staff emphasized the plant is intended primarily for capacity and reliability—running only occasionally (staff estimated maybe 50–60 hours per year)—to back up intermittent renewable generation when needed.
Why it matters: the new capacity aims to improve local reliability and provide redundancy during outages while being financed through bonding and wholesale contract revenues rather than placing the full burden on local ratepayers.
What’s next: staff said they will return with contract and bonding documents for council review, likely around the start of the next year.

