The Growing Challenge: Data Centers and Natural Gas Pipeline Capacity

As data centers continue to expand across the U.S., their energy needs are skyrocketing—creating new challenges in securing natural gas pipeline capacity. Historically, data centers relied on renewable sources and simple utility hookups to meet their power demands. But with the rise of AI and cloud computing, these facilities now require massive amounts of energy, prompting a shift in how they source fuel.

Industry experts at the recent LDC Gas Forums’ Nat Gas to Power event highlighted a critical issue: communication gaps between data center developers and midstream companies.

Pipeline operators, however, remain cautious. They prefer long-term contracts to justify building new infrastructure, and competition for gas supply is fierce, especially with LNG facilities vying for the same resources. This means data centers are entering a highly competitive market for natural gas.

One potential solution lies in leveraging underutilized firm capacity held by utilities. Many utilities maintain excess capacity to meet peak demand, which often goes unused 90% of the time. By creating “synthetic firm” solutions—combining multiple pipelines and interruptible options—developers could achieve near-99.9% reliability without building new infrastructure. Still, experts warn that this latent capacity is in high demand from manufacturers and power generators, making it far from guaranteed.

The takeaway? Data centers and midstream companies must work together early in the planning process, adopt phased growth strategies, and explore creative solutions to secure reliable energy. As the digital economy grows, collaboration will be key to powering the next generation of data infrastructure.

 

 

Source: Staines, Killian. US Data Centers Face Growing Pains in Securing Natural Gas Pipeline Capacity. Gas Daily, S&P Global Commodity Insights, November 19, 2025.

KMEA and KMGA Board of Directors Meeting

On November 13, 2025, both the KMEA and KMGA Boards of Directors held their meetings in Wichita, Kansas, in conjunction with the Annual Conference. The KMEA Board meeting included several significant actions. The Board adopted Resolution No. 241, officially welcoming the City of Attica as a full member of KMEA. Another key decision was the approval of Resolution No. 242, authorizing the issuance of revenue bonds for the construction of a new Mid-States facility. This project addresses substantial growth within KMEA, which has expanded from eight employees to twenty in just five years. The new facility will provide additional workspace, a safer environment for staff, and a large meeting space for member cities. Only cities involved in utilizing the KMEA Mid-States staff for fee for service projects will see a slight increase in agency fees to help fund the initiative. The Board also reviewed and approved the 2026 Annual Budget and accepted the Nominating Committee’s slate of candidates for Executive Committee positions. Mike Muirhead of Garden City will serve as President, Stacie Eichem of Wamego as Vice President, and Dustin Bedore of Goodland as Secretary/Treasurer. At-Large Members include Jeff Winkler of Baldwin City, Manny Milbers of Beloit, and Bret Glendening  of Osawatomie, who will also serve as the Joint Board for Administration Representative.

The KMGA Board of Directors also met on November 13. The proposed 2026 annual budget was reviewed and unanimously adopted. The Board accepted the Nominating Committee’s slate of candidates for Executive Committee positions: Gus Collins of Winfield will serve as President, Ethan Reimer of Halstead as Vice President, and Nathan Law of Louisburg as Secretary/Treasurer. At-Large Members include Katie Hodge of Osage City and Tara Pierce of Argonia. Nathan Law will also serve as the Joint Board for Administration Representative.

We extend our sincere thanks to all Board members who attended in person and virtually.

 

 

 

 

 

 

APPA Urges FERC to Respect Jurisdictional Limits in Large Load Interconnection Rules

On November 21, 2025, the American Public Power Association (APPA) submitted comments to the Federal Energy Regulatory Commission (FERC) regarding the Secretary of Energy’s advance notice of proposed rulemaking (ANOPR) on interconnecting large loads to the interstate transmission system.

APPA emphasized that FERC should respect the Federal Power Act’s jurisdictional boundaries by:

  • Allowing retail regulatory authorities to continue governing retail service terms for large loads.
  • Avoiding mandates for transmission providers to offer retail wheeling service.
  • Maintaining its disclaimer of authority over bundled transmission sales.

Additionally, APPA urged FERC to protect existing customers from increased costs or risks resulting from new interconnection rules. Any principles adopted must include clear provisions for allocating stranded cost risks to large load customers if they fail to meet forecasted electricity demand.

This guidance aims to ensure fairness and stability as FERC considers new policies for large load interconnections.

Click HERE to read full article.

KMEA 2025 Awards Recipients

This year’s Dedicated Commitment to Service Award recipient is Jeff Ahring, City Superintendent for the City of Lincoln Center.  Jeff  began to work as a Power Plant Operator for the city in 2013. In December of 2014, he was promoted to Power Plant Foreman, where he was known for keeping the power plant spotless and the engines well maintained. Following his supervisor’s retirement, Jeff was promoted again to City Superintendent in January of 2023. Since becoming City Superintendent, Jeff has continued learning and has been motivated to get their water/wastewater certifications, which in turn has inspired his employees to do the same. Considered a strong yet humble leader by both his employees and the community he serves, his co-workers and peers not only respect him as a leader but consider him as  friend. The city’s mayor says, “I am proud he is being honored today, not just for his excellent work as superintendent this past almost three years, but for a decade of dedicated commitment to service at our power plant. His hard work, performed day in and day out, has been the backbone of our city’s power supply. It is that unwavering, long-term dedication that we celebrate today.”

KMGA 2025 Awards Recipients

This year’s recipient of the Mike Gilliland Honor Award is Thomas Bevan, Public Works Director for the City of Kechi
Thomas began his career with the city in 2010 as a maintenance worker in the Public Works Department. Over the next decade, through hard work and dedication (and probably a few late nights fixing gas and water lines), he steadily climbed the ranks and was promoted in 2020 to the role of Public Works Director, the position he proudly serves in today.

Global LNG Boom: How a Surge in Production Will Reshape Gas Markets by 2030

According to the International Energy Agency’s Gas 2025 report, global liquefied natural gas (LNG) export capacity is set to expand by an unprecedented 300 billion cubic meters per year by 2030, fueled largely by new projects in the U.S. and Qatar.

This surge is projected to boost net LNG supply by about 250 bcm annually by 2030, which could exert significant downward pressure on gas prices, easing tight market conditions and increasing demand—especially in price-sensitive regions. The outlook projects roughly 1.5% annual growth in global gas demand through 2030, with the Asia-Pacific and Middle East leading this rise.

However, while lower prices may drive up consumption, there’s a risk: sustained low prices could deter future LNG investments, introducing long-term supply uncertainties.

Click here to read the full article.

Paul Mahlberg voted to SPP members committee

At the November meeting of the Board of Directors and Members Committee, General Manager Paul Mahlberg was officially elected to serve a full term on the Southwest Power Pool (SPP) Members Committee, representing the municipal sector.

The SPP Members Committee collaborates with the SPP Board to oversee and guide the general operations of the SPP organization. Paul will be one of only two representatives from the municipal sector on the 24-member committee, serving the entire SPP region.

KMEA staff, KMEA Executive Committee and the entire KMEA Board congratulate Paul on this special election.  His service will benefit the KMEA membership and the broader municipal sector across the SPP region.

SPP Approves $8.6 Billion Transmission Plan to Strengthen Grid Reliability

Southwest Power Pool (SPP) has approved its 2025 Integrated Transmission Plan, a portfolio of high-voltage projects designed to meet rising electricity demand and enhance grid resilience across its 14-state region. The plan includes a new 765 kV backbone for efficient long-distance power delivery and supports interconnection of new generation resources. With electricity use expected to double in the next decade, these investments—projected to deliver $12–$18 in benefits for every dollar spent—will ensure reliability, enable economic growth, and prepare the grid for future challenges

Click Here to read the full article.

The City of Neodesha Puts New Generation Facility to the Test

Starting Monday, October 6, the City of Neodesha put its newly installed generation facility through a real-world test. From Monday morning until late Thursday afternoon, the city carried the entire community’s electrical demand using its own generation resources.
The brand-new plant, commissioned and dedicated on August 13 of this year, consists of four CAT C175 generators, each rated at 3 megawatts. This marks a significant investment in local energy resilience.
The test was prompted by Evergy, which requested the city operate the plant while upgrades were made to the 69 kV transmission line connecting Neodesha to the Evergy system.
City staff, with support from KMEA Midstates and Foley Power Solutions, manned the plant around the clock to ensure optimal performance and uninterrupted power for residents throughout the event.

“The City of Neodesha is very pleased with the successful stint of power generation from our new City of Neodesha Generation Facility. This accomplishment represents a major step forward in our ongoing commitment to reliability and energy resilience for our community. We extend our sincere appreciation to KMEA and Foley for their outstanding support and partnership throughout this generation period. Their expertise and collaboration were instrumental in making this effort a success,” said City Administrator Brogan Jones.

During the outage, the city generated 452 MWh of energy, with a peak output of 7.7 MW and an average of 3.1 MW. Crews managed the city’s energy needs by operating between two and four generators throughout the four-day run. In total, the plant consumed 33,794 gallons of diesel during the event.

KMEA & KMGA Board of Directors Meeting

The KMEA and KMGA Board of Directors meetings are just around the corner!
These meetings will be held in conjunction with the KMEA/KMGA Annual Conference on Thursday, November 13th in Wichita, KS.

We encourage you to register your attendance using the link below, whether you plan to join in person or virtually. Your response helps us ensure quorum for both the KMGA and KMEA Board of Directors meetings. Agendas will be distributed on Thursday.

Register here!

Meeting Details:

  • Date: Thursday, November 13, 2025
  • Location: Wichita Marriott, 9100 E. Corporate Hills Drive, Wichita, KS 67207
  • Times:
    • 10:00 a.m. – KMGA Board of Directors Meeting
    • 10:45 a.m. – KMEA Board of Directors Meeting

Thank you for your continued dedication to the agencies and your support of our membership.
We look forward to seeing you all in Wichita!