Strength and Stability in Joint Action

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Since our inception in 1980, KMEA has embodied the concepts of strength and stability in order to provide a low cost, reliable and environmentally responsible power supply to communities across Kansas. In 1982, the Agency completed its first power supply project named the Nearman Project by purchasing 37.5 MW from the Kansas City, Kansas Board of Public Utilities Nearman Unit Number 1. In 1998, KMEA was successful in having the original Act amended, which eliminated the need for its members to have a generating municipal electric utility. This change in legislation opened the doors for “distribution only” municipal electric systems to become KMEA members. Today, KMEA is composed of 79 municipal members.
Those original members back in the early 1980’s knew the power of strength in numbers, and that same belief still holds true today. In addition to strength in its member’s numbers, KMEA knows that strength is found in its diverse power supply portfolio. This portfolio includes a variety of resources that provide stable rates such as coal, natural gas, fuel oil, and renewables. This diversity reinforces KMEA’s core business strength and ensures predictable and stable rates over the long term. Over the decades, the members have benefited from hydropower from the Southwest Power Administration and the Western Area Power Administration, a system capacity and energy product from the Grand River Dam Authority, along with wind energy from the Marshall Wind Farm to name a few.
Looking ahead, KMEA is poised for growth as it continues to focus on providing a strong and stable power supply to its members. In this regard, five cities have agreed to buy into a large natural gas-fired combined cycle plant, Dogwood Energy Facility. This project brings a long-term, cost-based project for these five cities. In addition, KMEA staff is currently working very diligently to provide a wind energy opportunity for its members over the next few months.
Through the tenets of strength and stability, KMEA has found great success over the past 30 years and we look forward to continuing to provide these services to our membership well into the future.

Once Again Your Power Plants Came Through!

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From the snow and ice storms out west several weeks ago to the recent storms in the east the weather has been a bit of a challenge to say the least. We were recently staying overnight in Garnett when strong storms and high winds passed through the city. The electricity went off in the early morning hours and at that moment the power plant became the most valued asset in town. It’s times like these when we realize how important it is to have the ability to produce electricity for the residents and businesses in your communities. Your time and toil pays off in knowing you are able to keep the lights on through rough times.

You know the phone is going to ring with someone on the other end telling you the electricity is off, but you probably don’t get a lot of calls to say thank you. It’s with great respect that we say thanks to all of you for dedication to the folks in your communities. I believe that public power cities need to toot their horns about the value of local generation. Sometimes it is difficult for you to defend the expense associated with operating a power plant but during those wee hours of the morning when the storm passes through don’t underestimate the value that you and the power plant provide to the city. Thank You!

“KMEA Annual Golf Outing”

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The Stresscrete Group of Atchison, Kansas title sponsored the “KMEA Annual Golf Outing”.  Thirty two Golfers enjoyed the Falcon Ridge Golf Course on Thursday June 8th.  The Golf Outing rounded out a two day KMEA event in Overland Park.  Thanks to Stresscrete and all of the sponsors for making this outing possible.

Sega Inc. Sponsors “KMEA Night at Kauffman”

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Attendees of the Executive Committee Meetings and Joint EMP Meetings held Wednesday June 7th were treated to a night at Kauffman Stadium. Sega Inc. sponsored the event with access to the Pepsi Porch and a Cheeseburger and Hot Dog buffet.

 

Joint EMP Meeting in Overland Park

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At the Joint EMP meetings last Wednesday, June 7th, members heard presentation from multiple agencies.  The meeting began with a presentation from Jeff Haas, Vice President, Membership and Strategic Planning for the American Public Power Association (APPA) explaining the benefits of membership in his organization. Jeff was followed by Lanny Nickell, Vice President of Engineering for the Southwest Power Pool (SPP) who gave an overview of SPP and how it relates to KMEA.  The third presenters for the day were Dong Quach, Manager of the Electric Production Division and Andrew Ferris, Director of Electric Supply Planning for the Kansas City Board of Public Utilities (KCBPU).  Dong and Andrew talked about opportunities for energy through KCBPU to KMEA member cities. The meeting concluded with Tom Saitta, Director , Electric Operation for KMEA updating members on transmission.

Representatives from 7 Cities Visit GRDA

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17 representatives from 7 cities visited the GRDA Pensacola Dam Facility.  They were welcomed by Cameron Philpott, Manager of Business Development and Dan Sullivan, CEO of the Grand River Dam Authority (GRDA).  Mr. Sullivan presented information to the group about GRDA and took the time to answer questions.  After the presentation the group toured the facilities

 

City of Osawatomie Adds Generation

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The City of Osawatomie is in the process of adding 12 MW of generation to their system.  At this time, they have install three of the six 2 MW Caterpillar Gen Sets to accomplish this. Osawatomie’s Power Plant Superintendent Stewart Kasper took KMEA staff on a tour of the new facilities.  The three Gen Sets pictured are installed and ready for use.  According to Stewart, the city is waiting on metering to be installed to complete this first stage of the project.

Director, Projects & Asset Management, Neal Daney – “The 3 T’s”

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There are many things to consider when building sustainable, predictable rates for your customers. But, one thing is for certain—reducing diversity increases risk to your consumers.
Diversity in a power supply portfolio can mean a multitude of things, but let’s break it down into the 3 T’s—technology, type, & term:

• Technology—natural gas, coal, hydro, wind, & solar
The natural gas market is historically low today and so is wind. It won’t always be that way. Just as in real estate, the energy markets move in cycles.
• Type—Base-load, Intermediate, Peaking, Energy Only
You wouldn’t go to the golf course with 6 drivers in your bag, nor should you have 6 baseload products in your power supply portfolio. The variety in your portfolio will strengthen a
positive outcome.
• Term—1 month, 1 year, 5 year, 10 years or longer
To reduce risk, it is important to have portions of your portfolio expiring at different times.

A well-diversified portfolio doesn’t mean that your community will have the lowest rates in the State, but it also means you won’t have the highest either as market conditions change over time. Building a power supply portfolio is comparable to running a marathon…it is not a sprint. Make sure your community is preparing for the long haul. Please call KMEA if you would like to discuss your power supply portfolio and the options available to you.

Our Ever Changing World, Sam Mills

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Did you ever think that you may not need to own a car or even need a driver’s license? At some point in the future you will most likely be able to simply summon a driverless car on your phone or other device and it will appear in front of you to take you where you want to go.

Would any of us think that there would be a time when renewable energy would be such a large percentage of overall generation that it would be curtailed? Well it happened. The growing solar generation in the California ISO has created just such a scenario. CAISO curtailed 80 GWh of renewable energy in March.

This is how our world is changing and sometimes it is hard to keep up with and some things may be hard to accept. The time may not be too far away when homes are no longer connected to the electrical grid. It may sound like a movie but think about the advancements in storage technology, solar technology, and nuclear generation in a suitcase, it may be right around the corner.

I can imagine our great grandkids or even our grandkids not needing a driver’s license or an electric meter on their homes. It will be really cool and I hope I am around to see it.

http://www.utilitydive.com/news/is-grid-defection-still-a-threat-to-the-utility-business-model/440272/

 

 

“Member Spotlight” Wamego, Kansas

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Last year, the City of Wamego celebrated 150 years of history, that all began in 1866 when the Wamego townsite was founded.  At that time, the Kansas River valley was already known as a rich agricultural area.  The neighboring communities of Wabaunsee, Louisville and St. George were well established, and construction of the Kansas Pacific Railroad was pushing west from Topeka.  A group of men surveying a route for the railroad eyed the site as a location that would be free of flooding from the River and formed a townsite company.  Once the railhead reached Wamego, the townsite was platted and Wamego was set to take off.  By the next year the town had “a population of over 300, forty good substantial dwellings, three stores with large stocks of general merchandise, a drug store, bakery, two saloons, gunsmith blacksmith and wagon shop, and a no. 1 harness shop…” according to the Pottawatomie Gazette.   The town was incorporated in 1868, and soon became the division headquarters for the railroad, located at what is now the City Park.  More permanent buildings were constructed in following years, some of which are still standing downtown.  The Columbian Theatre building was built in 1895.  City Park was purchased in 1901, and water and electric were installed in 1903.  Perhaps the most famous past resident is Walter P. Chrysler, born in Wamego in 1875, but raised in Ellis.  Since 1900 Wamego has experienced population growth each decade but one, and now has just under 5,000 residents.  Although proximity to Manhattan and Kansas State University have bolstered growth in Wamego, the community has a large employment draw of its own:  Caterpillar Work Tools, which manufactures attachments for materials moving equipment.  This enterprise can ultimately trace its origins to a blacksmith shop commenced in 1889 by John Balderson.  Other related manufacturing businesses call Wamego home, and Highland Community College has a satellite campus in Wamego.  An award winning health center and school district enhance the quality of life in Wamego, rounded out by great attractions like the giant 4th of July celebration, Oz Festival, Tulip Festival, Old Dutch Mill and Oz Museum.