Cape Girardeau County solar project proposed for 2024 construction

A standing room only audience of residents packed into Cape Girardeau County Commission chambers July 24 to hear a St. Louis attorney and representatives of Juno Beach, Florida-based NextEra Energy explain the benefits of a solar farm — Lutesville Solar Project — being planned for 1,500 acres in the southeastern part of the county, near Delta.

The site under consideration is farmland bordered by County Road 244 on the north and Highway 25 to the south. The site encompasses several parcels of land owned by several families who would lease their property to NextEra and see it returned after the project is decommissioned after 30 years.

Mark Brady, attorney for Polsinelli Law Firm, told commissioners the company is seeking an authorizing resolution from commissioners to proceed.

Project benefits

"We estimate 217 jobs will be created for the county in the 1.5 years of construction with approximately 11 ongoing jobs once the project is underway," said Lina Jensen, NextEra's project director. "The primary beneficiary of generated taxes will be the Delta R-5 Schools, which we think will generate $13.34 million over 30 years or about $1,900 per student, a figure representing a 13% increase for Delta R-5's current revenue."

Buyer

In a Jan. 17, 2020, story in the Southeast Missourian, the project was reportedly stalled because NextEra hadn't found a market for the electricity produced by the solar farm.

In her remarks a week ago to the County Commission, Jensen said there remains no identified buyer lined up for the power the solar farm will produce, while noting Ameren Missouri remains a possibility.

"Hopefully, in a few months, we'll have a contract but no agreement is in place right now," she said.

In an email to the Southeast Missourian, the company offered further clarification.

"The Lutesville Solar Project is actively being marketed (but) a customer for the energy generated by the proposed project has not yet been secured," wrote Naomi Morrison, NextEra energy resources spokeswoman.

"Lutesville Solar is an innovative solar project proposed for Cape Girardeau County that will have a capacity of generating up to 200 megawatts of clean, homegrown energy. The project is more than solar panels, it's a significant capital investment in the area and will create construction jobs and several full-time positions," Morrison added.

Taxing scenarios

NextEra outlined four possibilities for tax assessment from a solar buyer but the one seemingly most appealing to audience members and to Commissioners Charlie Herbst and Paul Koeper, who were present July 24, is referred to as the Chapter 100 option.

Missouri Revised Statutes Ch. 100 is a section of Missouri law dealing with industrial development.

Attorney Brady said that historically, solar energy projects were tax exempt in Missouri but the state Supreme Court recently eliminated the exemption.

Ch. 100, Jensen said, "provides tax certainty and guarantees tax revenue remains local."

"Chapter 100 is probably the way to go and looks the most viable for the direction we'd like to see the project go," Koeper said.

"This option is a positive development," Herbst added.

NextEra representatives said successful Ch. 100 agreements are in place in the Missouri counties of Audrain, Ralls and Warren. Ch. 100 documents are "being prepared" in Henry County, with discussions "underway" in New Madrid County.

Concerns

A resident present asked NextEra to be more proactive in communicating with affected landowners when the time of construction draws near.

Another resident, who self-identified as a landowner impacted by the solar farm, added, "It all sounds great but the long-term impact on the land itself is destructive."

Company

NextEra had revenue of more than $18 billion in 2020, with approximately 14,900 employees throughout the U.S. and Canada.

It is reported to be the largest electric utility holding company by market capitalization in America.

Name

Commissioner Koeper pointed out to NextEra representatives that Lutesville Solar Project may be misnamed since it lies entirely in Cape Girardeau County.

Lutesville, now part of Marble Hill, Missouri, is in neighboring Bollinger County.

Jensen indicated the project will "probably be renamed," but Morrison indicated otherwise in her email.

"Developing a solar energy project is a multi-year process that typically lasts five to six years. The name, Lutesville Solar, was selected at the early stages of the development process and there are no plans to change the name of the project at this time," she wrote.

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