What Will 2018 Bring?

2017 flew by and here we are starting a new year. The past year was an interesting time for the electric industry. The price of electricity, wind generation installation, solar construction, and the abundance of natural gas has changed the industry for the foreseeable future. The U.S. Department of Energy is looking to find ways to sustain the coal and nuclear plants and the construction of a nuclear generation plant was halted mid-project. The industry has gone through a lot of growing pains but the good news for the consumer is that energy prices are lower than they have been for years. I found an interesting article that provides some insight into what we can expect in the power sector for 2018.

https://www.utilitydive.com/news/10-trends-shaping-the-power-sector-in-2018/515235/

Can America’s power grid withstand a brutal winter?

 

by Terry Jarrett

Maybe you have to live in the Northeast — or even Southeast United States — to get the full effect. But right now, much of the country is struggling through brutally cold weather. It’s not uncommon to see temperatures down in the teens across much of the South. And record sub-zero temperatures in the North have many recalling the “polar vortex” of 2014.

Home heating bills will surely be climbing this month as the mercury plunges. But there’s a more troubling problem emerging. As Bloomberg News is reporting, the nation’s electric grid has begun to show signs of “fatigue” as power plants churn in overdrive to meet heavy demand. Oil burning power plants in New England are running short on fuel. And some of these plants may reach end-use limits due to emissions restrictions.

New England faces the added challenge of lacking sufficient natural gas pipeline capacity to cover increased electricity usage during the latest cold snap. In contrast, however, some areas of the country have been able to ramp up more successfully — thanks to robust coal capacity. PJM Markets reports that coal cranked out 47,000 megawatts of electricity this past weekend, compared to only 21,000 MW for natural gas. And nuclear power also exceeded gas-fired power generation, delivering roughly 35,000 MW. Notably, wind turbines offered only a paltry 3,000 MW.

Coal and nuclear plants have long anchored baseload power generation in the United States. And clearly, during the current chill they are proving their mettle — with all of America’s 99 nuclear power stations in operation right now to help keep the grid intact.

There’s an important lesson here — akin to the old adage “You don’t miss your water until your well runs dry.” The renewable energy crowd that haughtily lobbies for a wide-eyed transition to wind and solar believes the nation can simply close down coal plants and make a bold leap into “green energy.” But as the latest round of frigid weather demonstrates, it’s a very good thing to have sturdy, baseload power on hand when it’s suddenly needed.

All of this doubly matters because America has lost an unprecedented amount of baseload capacity in recent years. Since 2010, more than 60 gigawatts of coal capacity has disappeared — enough electricity to power 40 million homes. And by 2020, an estimated 80 gigawatts of coal capacity will have been shut down.

Thankfully, Energy Secretary Rick Perry has identified this pressing concern for the nation’s power sector. And in response, he has proposed that the Federal Energy Regulatory Commission give added weight to baseload coal and nuclear plants that maintain on-site fuel supplies — and thus can run independently and long-term to shoulder the weight of a heavily taxed power grid.

In a week, FERC is slated to make a decision on Perry’s proposal. But as the current, harsh winter demonstrates, Americans need to appreciate the importance of baseload power plants that are keeping them warm and safe right now. Coal and nuclear plants still produce 50 percent of the nation’s electricity, and they are indeed working overtime right now to keep the grid afloat. Thus, Secretary Perry is wise to take a real-world approach to future energy use.

Polling shows that 70 percent of voters favor a diverse mix of fuel sources to maintain grid reliability and affordable power. And so, coal and nuclear power must continue to serve as sturdy twin pillars of a reliable, national electric grid. And with the population of the United States continually growing, it makes sense to upgrade existing baseload plants over the long term — to ensure that the nation can continue to keep its lights on and its homes, schools, and hospitals warm.

KMEA Staff and Members attend KMU Day at the Capitol

This year’s program featured: • Lt. Governor Jeff Colyer, • Speaker of the House Ron Ryckman, • Chairman of the House Taxation Committee Steven Johnson, and • Chairman of the House Energy, Utilities and Telecommunications Committee Joe Seiwert. Members and Staff had the opportunity to meet with legislators over lunch and joined KMU for a legislative reception following the days activities.

John Sweet Retirement Reception

Staff attended a retirement reception for John Sweet on January 17th.  John has been the City Administrator at the City of Lyons since January 2002 and plans to retire March 30th.  Throughout the years, John has been a strong advocate for the City of Lyons, the State of Kansas and KMEA/KMGA member cities.  John will now have the time take long helicopter rides and embrace the gift he was given, a book entitled “How to Overcome Shyness”, with step-by-step instructions, exercises, and proven advice for dealing with shyness in any situation.  We all wish John the best as he begins the next chapter in his life!

 

Altamont History as recorded by Frances Hess

Two Louisburg businesses named top in metro

LOUISBURG — For the first time in Miami County history, two Louisburg businesses have been named as recipients of a Kansas City metro area business award.

Thinking Bigger Business Media recently announced that Thirsty Coconut and Meridian Business Services, both located in Louisburg, were among the winners of the 17th annual “25 Under 25” awards.

The awards are presented to 25 local businesses with fewer than 25 employees. An independent panel of judges consisting of area business leaders chose the winning companies. Nearly 1,500 nominations were submitted.

When the list was released, it was big news for Louisburg and Miami County as the two local companies were on it.

“The nomination process for that award is not easy,” said Janet McRae, Miami County economic development director. “To have one local business considered, let alone two, reflects…..

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Natural Gas Prices Jump

Amid freezing temperatures, natural gas daily index prices have surged over the past several trading periods.  Since Dec 25th, Southern Star daily index price has risen $4.12/MMBtu, posting at $6.475/MMBtu for today, Jan 3rd.   Enable daily index pricing for the same time period jumped $5.00/MMBtu, posting at $7.575/MMBtu for today.

On Monday, the U.S. burned the most natural gas ever, consuming 143 Bcf of gas to beat the previous high of 142 Bcf set four years ago, as record breaking cold temperatures grip the Eastern half of the continental U.S.  Tuesday’s consumption is expected to top 144 Bcf.

The record breaking cold is also impacting natural gas production.  Production companies are experiencing “freeze offs” in the field from North Dakota to Texas.  Pennsylvania’s Marcellus shale production has also dropped off.  Overall estimated output dropped about 20%, according to industry analyst.

 

 

Obituary for Cheryl “Diann” Burress

C. Diann Burress
1946-2017

Platte City, Missouri- Cheryl “Diann” Burress, 71, Platte City, Missouri passed away on December 13, 2017.
Diann was born September 1, 1946 in Gallatin, Missouri to Sid and Delores (Smith) McFee.
She was preceded in death by her parents; sister, Maxine McFee-Shultz and brother, Leo Don McFee.
Diann joined KMEA at its inception in 1980. Over her career she lead KMEA’s participation in the Mutual Aid Program for Utilities, a cooperative effort of KS associations and agencies to respond to natural disasters and emergencies. She was instrumental in helping cities get power restored after flooding, ice storms and tornadoes. Diann received the Gilbert E. Hansen Jr. Outstanding Award in 2010 in recognition of her significant contributions to municipal joint action and public service power.
Diann loved to travel the country to photograph and explore new places and visit her friends. She enjoyed sewing and creating one-of-a-kind bags and quilts for her friends and family. Diann was extremely talented in finding solutions for just about anything. Her favorite thing to do was spend time with her grandchildren, whom she loved very much. Diann was an extremely creative, generous, loving and a wonderful person. We will miss her dearly – she will live in our hearts forever.
Survivors: husband of 49 years, Richard Burress, of the home; daughter, Trish (David) Cross, Gladstone, MO; brother, Charlie (Pat) Baker, Parkville, MO; nephews, Rick (Daryl) Heldenbrand, Lee’s Summit, MO, Randy (Becky) Heldenbrand, Olathe, KS and Ron Heldenbrand, Olathe, KS; 2 grandchildren, Gavin and Fiona Cross, Gladstone, MO; great-nephew, Ryan Heldenbrand.
Services: 11:00 AM, Wednesday, December 20, 2017 at Poland-Thompson Funeral Home, Cameron. Visitation: 10-11:00 AM, prior to service. Burial: Winston Cemetery, Winston, MO. In lieu of flowers, donation to Wayside Waifs and/or Head for the Cure.

Our Mission Remains The Same

Dogwood Energy Center

Buckeye Wind Farm

Kansas Municipal Energy Agency was formed under Kansas Law back in 1980. The Agency was authorized by state statute, to plan, finance and construct projects for the purchase, sale, generation and transmission of electricity for the purpose of securing an adequate, economical and reliable supply of electricity and other energy for its members.

Two such projects are nearing completion that meets the original intent and mission of your Agency – the Dogwood Energy Facility and the Buckeye Wind Farm.

Five member cities are participating in the Dogwood Project. The cities of Garden City, Gardner, Lindsborg, Ottawa and Russell have signed up for 62 megawatts of capacity and energy from the Dogwood Energy Facility, a 650 MW natural gas-fired combined cycle plant located in Pleasant Hill, Missouri. Under this project, KMEA will buy an ownership interest in the facility. Just this past week, the KMEA Board of Directors approved such financing and it is expected that we will close on the transaction in February 2018.