Sioux Falls leaders and a regional power utility have struck a deal that saves the city millions in the first years of operating the new events center.
The newest attraction under construction in Sioux Falls is sure to have significant power needs. City leaders estimate the events center going up on the north side of town is likely to use six times the peak electricity of the existing arena.
Because of the types of events the Denny Sanford Premier Center is designed to host, city leaders believe it needs the potential to use 4.5 megawatts of electricity. Big customers pay for that massive peak in demand charges. But the events center budget won’t include demand charges for its first five years. It's a new effort for the highest energy users.
"We have a great program with the Heartland Energy ONE Incentive, and that is a fixed-rate, energy-only charge for large retail customers of one megawatt or larger," Heartland Consumers Power District CEO Russell Olson says.
The program helps mitigate the immense operations costs of the new venue. Sioux Falls Public Works Director Mark Cotter says the deal that saves half a million dollars a year on electricity is just one of the city’s efforts to keep the events center in the black. He notes an efficient HVAC system and extra attention to the outer envelope of the building where energy is often wasted.
"We’ve had that analyzed by a third party so we can actually maximize and take opportunities on how we actually build that outside, from its window system to its insulation system, to make sure that we can minimize the amount of air transfer as much as possible," Cotter says.
The events center is still under construction. It’s slated to open next fall.
The agreement between Sioux Falls and Heartland also includes an extension of an existing power contract.