A state low-interest loan will help build Sioux Center’s planned electric generation project.
The Iowa Economic Development Authority approved offering a $2.5 million, 2% interest loan for the Sioux Center project, which will install over 11 megawatts of diesel generation in northern Sioux Center. Work on this project is anticipated to begin next year.
The purpose of adding local generation is two-fold: it will help sustain affordability in Sioux Center’s power portfolio and it will provide emergency power in an extreme situation in which power supply was cut off to Sioux Center. In that situation, this generation would partially power the town, which has a total peak demand of about 28 megawatts.
“Reliability of our electric service is apriority in Sioux Center, and this generation will enhance this effort,” said Sioux Center Utilities Manager Murray Hulstein.
Sioux Center’s power provider, Missouri River Energy Services (MRES), pays members like Sioux Center to construct and have generation ready to use. MRES participates because they can then call on that generation when electricity is limited or very expensive on the entire grid, reducing their overall cost to provide energy to all members, which in turn benefits members like Sioux Center.
“MRES’ contribution to this project allows us to move forward,” Hulstein said.
The estimated $24 million project will be funded primarily by MRES over 30 years. Ultimately, payments from MRES will cover most of the total project cost – including 30 years of operating costs.
The Sioux Center City Council approved executing the $2.5 million, 15-year loan agreement with IEDA this week. An anticipated completion date for construction and installation of the diesel generation is 2027.
