In mid-March, NPPD announced the execution of a 20-year power purchase agreement with Midwest Wind Energy, LLC and its affiliate Elkhorn Ridge Wind, LLC for an 80-megawatt wind energy project to be located at Bloomfield in Knox County.

The facility, to be constructed by the end of 2008, is expected to produce an amount of energy equivalent to the amount of electricity used by approximately 25,000 Nebraska residences in a year.

The project is a direct result of NPPD’s efforts to expand participation in wind development by issuing a Request for Proposal last July for wind projects up to 100 megawatts in size. Under terms of the agreement, Elkhorn Ridge Wind, LLC will own and operate the facility, and NPPD will purchase the output, half of which will potentially be shared with other public power utilities in Nebraska.

The Elkhorn Ridge power purchase agreement between NPPD and the private developer is the first of its kind in Nebraska. However, NPPD President and CEO Ron Asche said the utility is close to completing a contract with another wind energy developer for a 40 megawatt C-BED facility that will share a common substation with the Elkhorn Ridge wind energy project. That project will also be located near Bloomfield.

In addition to providing clean, renewable energy, the Elkhorn Ridge project will provide an economic boost to rural Knox County. According to Midwest Wind Energy, the project will cost $140 million, will generate more than $5.7 million in personal property taxes to local governments over a five-year period, and will pay more than $325,000 annually in lease payments to landowners. In addition, approximately 15 percent of the total project cost, or $21 million, will be invested in Nebraska for material and services needed to construct the project.
The Elkhorn Ridge Wind energy facility will be located in the service area of Cedar-Knox Public Power District, an NPPD wholesale customer.