SIDNEY -- The Sidney City Council Tuesday approved an agreement with Sandhills Energy, LLC for lease of land to develop a solar collection site.

In the memo presented to city council, Mike Palmer, electricity superintendent for the city, said Sandhills Energy sought to amend the land lease agreement and generator interconnection agreement for expansion of the solar facility on East Elm Street.

The expansion would produce energy outside of the power purchase agreement executed with Sandhills. According to Palmer's presentation, the additional electricity produced would be purchased by Municipal Energy Agency of Nebraska (MEAN) The city council authorize a land lease, interconnection agreement and power purchase agreement in November 2022. 

The land would be rented to Sandhills at $500 per acre with a 2 percent escalator on each anniversary date, according to Palmer's presentation. 

"We don't want to lose money on the deal," Palmer said.

Palmer asked the council to table the decision or approve it with conditions. The stipulations include the City retaining first right of refusal. Additionally, WAPA, Western Area Power Administration, will not allow back feed, returning electricity to the grid.

"It wouldn't be wise to sign it without making all all these aspects are covered," Palmer said.

According to Palmer, estimated power production is 3.8 megawatts on 12 acres.

The council approved the agreement contingent on the approval of the amendments.

The council also approved adding Clem Schumacher to the Housing Authority Board and received reports from Plummer Insurance and Cheyenne County Chamber of Commerce CEO/President Toshia Jones' first quarter report. Schumacher replaces Bob Volkmer who submitted his resignation. Volkmer's term would expire in October 2025.