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Kansas Wind EnergyA Municipal Utility Perspective

KANSAS CITY BOARD OF PUBLIC UTILITIES

Blake Elliott – Director Electric Supply Planning

September 2007

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KCBPU

Kansas City Board of Public Utilities, an administrative agency of the Unified Government of Wyandotte County/Kansas City, Kansas.

Our mission is to be the utility of choice and the workplace of choice, while improving the quality of life in the communities we serve.

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KCBPU Statistics• Providing electric service since 1912

• Service territory 127 Square Miles

• System peak 529 MWQty. Customer Energy (GWh)

Residential 57,500 562.3

Commercial 6,733 910.1

Industrial 94 897.3

Other 242 457.4

Total 64,569 2,827.12006 Annual Report

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KCBPU Environmental Responsibility

• KCBPU is the largest municipal utility in the State of Kansas.

• Dedicated to environmental stewardship– Early addition of renewable energy into our portfolio

ahead of regulations requiring participation– Energy efficiency programs such as heat pump

rebates, etc.– Active participation with customer groups managing

our Federal Power Hydro Allocations (SPA, SPRA & WAPA)

– Internal Environmental Services Department.

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KCBPU Wind History

• 2003 Electric System Master Plan recommended continually evaluating additional energy sources to meet the long term needs of the BPU.

• 2005 Integrated Resource Plan submitted to the WAPA recommended a review of renewable energy resources including wind.

• 2006 Electric System Master Plan Review by Black & Veatch consulting engineers recommends between 20 & 30 MW of wind.

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Why Participate ?

• Location advantage - better wind resource

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Location Advantage

• Smoky HillsClass 4 mean wind speed

• KCBPUClass 2 mean wind speed

21% higher average wind speed at Smoky Hills

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Why Participate ?

• Location advantage - better wind resource

• Size (> 100MW) - economies of scale

• Financing (private) - Production Tax Credits & accelerated depreciation

• Development time (faster)– site studies– site permits– landowner leases

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Potential Municipal Utility Pitfalls

• Desire to own the resources outside of utilities’ core competencies

• Request-For-Proposal public bidding process– Wind developers consider certain information

as proprietary. They may not bid if that information is open to competitor discovery. For example, indicative pricing, wind factor, turbine pricing, etc.

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REPA Advantages

• Long-term contract

• Fixed price

• Saves ratepayers money

• Reduces future air emission, water discharge and solid waste disposal from self generated and/or purchase power energy

• Hedge against high market purchase prices due to high gas prices of the units on the margin

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Why Smoky Hills?

• Right Development Team

– TradeWind Energy

• Right Time

• Right Price

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Outstanding Issues

• Transmission • Curtailments • Deliverability

• Wind generation & SPP market operations

• Wind energy profile and existing base unit turn down ratios

• Long term equipment maintenance & reliability

• State & Federal Regulations

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Thank You

KANSAS CITY BOARD OF PUBLIC UTILITIES

Blake Elliott – Director Electric Supply Planning

belliott@bpu.com or 913.573.6837