Governor Kelly Announces Six Fast Charging EV Locations

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TOPEKA – Governor Laura Kelly announced today that more than $4.6 million in federal funds will be directed to the first six locations selected for the state’s National Electric Vehicle Infrastructure (NEVI) Formula program. With existing fast-charging stations spread across the I-70 and I-135 corridors, these selected locations will fill gaps in EV charging stations along the state’s major highways and interstate system. 

“As more electric cars and trucks make their way onto Kansas roadways, they will need access to adequate charging facilities,” Governor Laura Kelly said. “With these awards, we’ll ensure electric vehicle charging stations are accessible to all Kansans for local and long-distance trips.” 

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Elective Pay Credit Online Portal Now Open

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The Internal Revenue Service on Dec. 22 unveiled the IRS Energy Credits Online pre-filing registration tool for taxpayers who intend to receive a direct payment or transfer a clean energy credit.

Established by the Inflation Reduction Act, elective pay (or “direct pay”) and transferability are credit monetization mechanisms to help states, local governments, non-profits, and other eligible entities access clean energy tax credits.

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KMEA Annual Questionnaire now available

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Dear KMEA members, it is that time of year again to participate in the annual survey of the membership. You will be receiving an email soon with the link to the form or you can follow the link here to get started.

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Seneca City Council discusses Substation and Generation Projects

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On December 20th KMEA staff presented options for discussion on a new substation and generation project to the city of Seneca City Council.

Several months ago, Evergy proposed substantial upgrades to the substation that currently serves Seneca and the local Rural Electric Cooperative.   Seneca staff reached out to KMEA for review of the Evergy plan and potential additional cost to the city if this project got completed.  KMEA and city staff quickly put a list of options together for presentation to the Seneca city council.  The city council reviewed five different options at the meeting.  These options consisted of Evergy moving forward on the rebuilding of the current substation to Seneca city adding a substation along with three generating units to the city’s electric department.  Currently Seneca does not have generating capacity as part of their electric utility.   “The goal for the city is to provide the most reliable and economic utility possible” says Steve Brooks, city manager.

The city council reviewed all the options and gave city staff and KMEA instructions to evaluate the options and evaluate what impact these options would have on the city’s retail rates to the customers.  KMEA and city staff will present the requested information at a meeting in January.

FERC Accepts CAISO Tariff Changes for Western Day-Ahead Electricity Market

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The Federal Energy Regulatory Commission in December accepted changes to the California Independent System Operator’s tariff that will enable it to launch a Western day-ahead electricity market.

The acceptance of Western day-ahead market rules by FERC was paired with approval of another significant set of ISO tariff changes that will provide important day-ahead market enhancements.

Collectively, these new rules are known as the Day-Ahead Market Enhancements (DAME) and the Extended Day-Ahead Market (EDAM).

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Grid Monitor Warns of Blackout Risks as Coal Plants Retire

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Rolling blackouts are a rising threat across the U.S. as aging power grids collide with extreme weather, rising electricity demand and a shift to cleaner fuels, the nation’s top grid monitor warned Wednesday.

In a report, the North American Electric Reliability Corp. said most regions of the country face growing risks of inadequate electricity supplies during periods of extreme cold and heat over the coming decade. Major wind and solar power projects that could serve metropolitan areas aren’t being built fast enough as power companies shut down old coal plants.

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SPP marks milestones and progress across western efforts in early November

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LITTLE ROCK, ARK. — Since 2019 when Southwest Power Pool (SPP) officially became a reliability coordinator for several utilities in the Western Interconnection, the grid operator has steadily grown its western customer base and portfolio of western services. The first two weeks of November 2023 have seen SPP make significant progress in continuing to advance three of those services: its operation of the Western Resource Adequacy Program (WRAP) on behalf of Western Power Pool; Markets+, SPP’s proposed bundle of day-ahead and real-time market services; and expansion of SPP’s regional transmission organization (RTO) services into the Western Interconnection.

On November 1, an important element of the Western Power Pool’s WRAP, for which SPP is the program operator and responsible for technical implementation of the program’s design, became operational. The WRAP’s operations program produces updated forecasts each season to help determine if participants will have sufficient resources, and it enables anyone with a deficit to secure additional resources. The operations program will remain non-binding for a period, meaning that no financial charges or deficiency payments will be assessed, but it is now fully functional and available to enhance system reliability.

“SPP is grateful for our partnership with Western Power Pool and the opportunity to help assure resource adequacy for their member utilities,” said Casey Cathey, SPP’s Senior Director of Grid Asset Utilization who has led SPP’s efforts as WRAP program operator. “We understand the importance of both resource adequacy and regionalization, and are proud of the work we’ve done to advance both causes for WRAP participants.”

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Florida Municipal Power Agency Voices Concerns About EPA Proposed Greenhouse Gas Rule

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The Florida Municipal Power Agency recently filed comments with the Environmental Protection Agency voicing concerns about EPA’s proposed greenhouse gas rule for electric utilities.

The rule, which targets CO2 emissions from fossil fuel-fired power plants, presents unique challenges in Florida, FMPA noted.

FMPA is a wholesale power agency owned by municipal electric utilities in Florida.

Florida relies on natural gas generation for 75% of its power supply, “by far the highest percentage in the United States. It would be one of the most impacted states by EPA’s proposed rule, which would introduce experimental ‘green’ hydrogen to partially fuel natural gas power plants by 2032,” FMPA said in a news release related to the comments.

The Florida Reliability Coordinating Council also filed comments on the proposed rule. The FRCC reported the rule would likely reduce natural gas generation levels between 20% to 40% for natural gas units, creating significant reliability risks in Florida, FMPA pointed out.

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December Natural Gas Report

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Storage Levels Continue to Grow

The Energy Information Administration (EIA) reported a rare late-season injection of 10 Billion Cubic Feet (Bcf) into storage for the week ended November 24th.  Expectations were for a 10 Bcf withdrawal due to the colder temperatures over the Thanksgiving holiday.  Current storage inventory is at 3,836 Bcf which is nearly 9% above the five-year average.

Record Production and Modest Demand Keeping Gas Prices Lower

Strong gas production levels, less widespread demand and high storage levels are keeping natural gas prices lower.  The winter NYMEX Henry Hub Futures Contract prices are averaging around $2.80 per MMBtu.  With the basis added to convert to Mid-continent pricing, projected monthly prices are currently averaging below $3.50/MMBtu.

Daily Index Prices React to Cold Snaps

However, anomalies in the daily index market have occurred coast to coast over the past 45 days.  With the below-normal temperatures at the end of October, mid-continent daily prices jumped $1.30 over the last 7 days of October, reaching the $3.135/MMBtu mark.  Colder weather over the Thanksgiving holiday also saw daily prices increase by 30¢ per MMBtu.

Most forecasts are calling for warmer than average temperatures for the 2023-2024 winter.  There will be cold snaps along the way.  The daily index market is still showing some built-in fear built and could result in sporadic volatility.  Under the Wood River gas supply contract, the exposure to the volatility of the daily index market has been greatly reduced.

 

First Steps Taken Towards New Generation in Russell

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At the November 21st Russell council meeting the city council approved a resolution authorizing and providing for the acquisition and installation of 15 Megawatts of generation.

Representatives from KMEA, Gilmore Bell, Stifel, and Russell staff presented the generation project details and its stages to the City Council.  The project consists of five 3 Megawatts CAT generating units to be added in both power plant locations.

“Russell takes great pride in its status as a Public Power Community, underscored by our governing body’s recognition of our utilities’ significance. I am appreciative of our committed team and governing body, resolutely committed to progressive action and strategic investments that continually elevate our community’s quality of life and secure its long-term sustainability.  Additionally, my appreciation extends to KMEA and their continual support and invaluable assistance in our endeavors and those of other member cities.  Public Power in Kansas would not be at the high level it is today without great city staff, governing bodies, and Team KMEA.” says city manager Jon Quinday.

As part of the long-term project the city plans to retire older units while adding additional capacity to the city’s portfolio.

Russell continues its investment into the electric department with this announcement coming on the heels of a $2,039,650 million dollar BRIC grant received to rebuild the city North 1 and 2 circuits.   The city council had previously approved the rebuilding of the East residential circuits 1 and 2 last year with construction to begin in the spring of 2024. These distribution rebuilds total more $4.5 million in project cost that will be completed over the next couple of years. The long-term plan for the city is to rebuild one circuit a year until the entire system is replaced.