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PPL and the Lancaster County Solid Waste Management Authority have entered into a lease agreement that is expected to have the turbines generating electricity this fall on the Frey Farm Landfill overlooking the Susquehanna River.
"This is a major step forward, and all systems are go for southeastern Pennsylvania's first commercial wind project," said James Warner, the authority's executive director.
The twin turbines, which have propellers 120 feet long, are projected to each produce 1.6 megawatts of electricity, enough to power about 750 homes.
However, all the juice is being purchased by Turkey Hill Dairy, located adjacent to the site. The wind power is expected to satisfy about 25 percent of the dairy's needs.
PPL and Kroger Corp., Turkey Hill's owner, have agreed on a 10-year purchase agreement. Any electricity not used by Turkey Hill will be sold by PPL.
The waste authority board on Friday approved a lease agreement with PPL that allows the utility to initially own the wind generation facility.
That's so PPL can take advantage of a federal 30-percent tax credit for alternative energy.
The authority also will give PPL $1.5 million in grant funds received from the U.S. Department of Energy, and loan PPL another $4.65 million.
In return, PPL will pay interest on both the loan and electricity sold.
PPL can transfer ownership of the project to the authority after 10 years, and the authority has the option of buying the wind project after 20 years.
The turbine project will sit on land the authority recently purchased from Frey Dairy Farm. Manor Township granted the authority a variance to setback regulations for the wind towers.
"The real neat thing about this is this will be one of the few examples where you have a microsite and a wind farm providing electricity adjacent to a user," Warner said.
Warner said that the unique geology of the Turkey Hill promontory that juts into the Susquehanna River is the best location in Lancaster County to harness the wind.
"We think Lancaster County can feel real proud it is recovering energy from wind at the only location where it's feasible."
