Council: No decision on solar farm

The North Platte city council took an analytical approach Tuesday to a proposed commercial solar farm in North Platte.

The project drew many questions from city council members — how it would connect to the city’s electric system, affect its existing power contract and be decommissioned when it wears out.

The council considered a conditional use permit for the farm, addressing whether it would be an appropriate land use at that location. City Planning Administrator Judy Clark said the question of whether the city should buy power from the solar farm, or not, was not relevant to the permit.

A public hearing on the topic was short-lived because no one spoke.

The 20-acre project, proposed by Premier Energy, would be near the intersection of Victoria Lane and E. State Farm Road in an A-1 transitional agricultural district.

Clark also read an email from nearby residents Jared and Melanie O’Keefe, who live immediately north of the site, at 4114 Victoria Lane. The couple said they could not attend the meeting but wanted to go on record in support of the project.

“We do not oppose the solar farm that is being proposed out here by our home,” they wrote, adding that Premier Energy had been “very transparent and forthcoming” in answering their questions.

“On a personal note, we feel that this is a better option than some other projects that could be proposed,” they said.

From there, the discussion turned technical. Councilman Ty Lucas said he needed a clearer understanding of how power from the solar array would move “from point A to point B,” how it would tie into the city’s infrastructure, and how it would affect North Platte’s wholesale power arrangement with Nebraska Public Power District (NPPD).

Connections with NPPD electricity

NPPD account manager Chris Hegert said that under the existing contract, North Platte is allowed to “self-serve” up to 10% of its load with renewable energy, without penalty. That means the city could purchase the solar farm’s output directly from Premier Energy without damaging its relationship or pricing with NPPD.

To tie the solar energy into North Platte’s electrical system, the farm would connect into the city’s 34.5-kV sub-transmission system through a collector substation, becoming “another input” alongside existing NPPD inputs that feed the city’s substations, Hegert said.

Any power purchase agreement with Premier Energy would be privately negotiated between the developer and the city. If the city chooses not to buy the power, the developer could, in theory, sell the output to another public power district, with North Platte collecting a “wheeling fee” for moving the power across its lines.

Hegert also noted that NPPD’s overall energy supply for the city, including the hydro plant on a hill overlooking the city, is already about 56% carbon-free.

Councilman Brad Garrick voiced concern that if another public power company outbid North Platte for the solar output, the city could end up bearing the land-use impacts of a solar farm without receiving the green energy benefit.

Premier Energy representative Jeff Cooke Coyle said such a scenario was unlikely because of the added cost of wheeling and interconnection, but acknowledged that another wholesale customer has already expressed interest in the project’s output.

He and Hegert outlined how the city might create a “green power” rate in the future, buying solar power at one price and reselling it at a premium to an employer that needs renewable energy credits for corporate or regulatory reasons.

Decommissioning

Removal of the equipment at the end of its life emerged as another sticking point.

The company’s plan estimates the net cost to tear down the project in today’s dollars would be roughly $738,000, backed by a proposed $750,000 bond or dedicated account. That estimate assumes the salvage value of copper and other materials offset part of the removal costs.

Council members questioned what would happen decades from now if inflation pushed decommissioning costs far above that figure, or if the project owner goes bankrupt. City Attorney Bill Troshynski said the bond is intended to protect the city if the project owner becomes “derelict,” but agreed that the council could consider a requirement that the bond amount be periodically adjusted for inflation.

Lucas also raised broader concerns about risk and long-term economics, noting that the Federal Reserve has reported delays and cost overruns for many large renewable projects that are racing to meet federal tax credit deadlines. He worried that if the project struggles financially and cannot sell power at a competitive rate, future councils might face “unintended consequences” or hidden costs.

Several council members suggested that the complexities of interconnection, decommissioning, insurance, access easements, and potential industrial users might be better handled through a more detailed development agreement rather than relying solely on a conditional use permit with a few added conditions.

Location

The location itself is another point of debate. Council members described Victoria Lane as a “beautiful street” where the city has already invested heavily in infrastructure, including water, sewer, and storm drainage. Some questioned whether dedicating roughly 20 of the 35 acres in the area to solar is the best long-term use of the property, given the potential for commercial or industrial development and ongoing growth to the east. Others floated the idea of exploring state-owned property near an existing city water tank might be a better site.

However, city officials noted that county moratoriums on wind and solar energy projects, as well as annexation issues could complicate that option.

By the end of the discussion, Councilman Ed Rieker said he was not comfortable voting on the permit yet. Rieker moved to table the conditional use permit until the next council meeting, giving the city staff and the developer time to research additional details and explore other site options.

The council agreed to the motion, leaving the solar farm’s future and the city’s role in potential local green-energy development undecided at this time.

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