Kingman County Commissioners signed long-term agreements with Kingman Wind Energy 1, LLC, to build a 200-megawatt commercial wind farm in the county.
The agreements are valued at $26.4 million over the 30-year anticipated life of the wind farm, according to a release from county spokeswoman Nancy Borst.
Kingman Wind Energy, a subsidiary of Florida corporation NextEra Energy Capital Holdings, Inc., has a 20-year contract to sell the power to Westar Energy. County regulations require commercial wind farm builders to first have an agreement to sell the power.
The following written agreements are also required: Specify how to pay and maintain roads used to build and preserve the wind farm; define an annual payment in lieu of taxes; and explain the costs and manner of decommissioning the wind farm if it ceases to operate.
Kingman Wind Energy 1 will make a one-time payment of $2.2 million to the county to cover various permits and additional expenses. That payment is due no later than July 27.
“The agreements also stipulate that the company will make an annual PILOT (Payment In Lieu of Taxes) of $800,000 for the first 20 years, and $700,000 annually after that as long as the CWF (commercial wind farm) is in operation. If the electrical capacity of the CWF increases, the PILOT will increase by $4,000 per megawatt for the first 20 years and $3,500 per megawatt annually thereafter,” as stated in the release.
The first PILOT will be due on or before Dec. 31, 2017. Up to 14.3 miles of paved county roads are expected to be used during construction.
The company will pay the county $500,000 to resurface 10 miles of roadway and an additional $170,000 per mile if more than 10 miles are used. This shall be paid by the end of this year.
If the wind farm is decommissioned, the agreement states a payment of $100,000 per turbine will be needed to remove all concrete foundations to a depth of 4 feet, equipment and remove access roads.
The agreement calls for property restoration to the way it was before the wind farm. Landowners may decide to keep the roads.
The release states NextEra Energy Capital Holdings has signed a guarantee for the decommissioning and road agreements for $12.5 million and $6 million, respectively.
“NextEra representative David Gil told commissioners Monday that the company is ready to begin construction immediately,” as stated in the release. “Gil said the wind farm should be complete and operational by the end of 2016.”
In addition to Commissioners Fred Foley, Carol Voran and John Steffen, County Counselor John Caton, Planning/Zoning Director Stan Goetz and Public Works Director Charles Arensdorf were also involved in the negotiations.