KMEA staff is a voting member on the Southwest Power Pool (SPP) Market Working Group (MWG). The MWG is responsible for the development and coordination of the changes necessary to support any SPP administered wholesale market(s). KMEA staff uses judgment to foresee the impact the current market changes have to its members today and in the future.
Today, SPP operates as the sole Balancing Area for nine states in the Midwest region, which includes the state of Kansas. SPP serves as both the security coordinator and market coordinator for the entire ~ 30,000 MW load footprint. Subsequently, the level of communication required between Load Serving Entities (LSE’s) like KMEA and SPP is very complex.
KMEA’s responsibilities have expanded to meet the needs and challenges of the current SPP market design. KMEA performs or manages contracted services for all functions required by SPP for LSE’s and generators within the State of Kansas. These responsibilities include:
• Purchasing Energy at the most economical price to balance the load.
• Developing and submitting load bids to SPP based on forecasted load and projected runs of non-registered internal generation.
• Optimizing the value for each city’s contracted resources based on the contractual agreements, market conditions, and city’s needs.
• Creating and submitting Bilateral Settlement Schedules (BSS) with the SPP and Counterparty and generating bilateral transactions for KMEA’s accounting system
• Reconciling after-the-fact adjustments to Bilateral Settlement Schedules (BSS) and updating bilateral transactions for KMEA’s accounting system to reflect actual MWh’s.
• Coordinating City registered internal generators dispatch with SPP.
• Producing, revising, and submitting generation characteristic information with SPP.
• Constructing, revising, and submitting generation offer pricing and generation outage information with SPP.
• Coordinating with SPP and city planned generation runs.
• Monitoring SPP for dispatch instructions and communicating accordingly to member cities.
• Submit meter data for generation and loads to SPP, while reviewing generation and load meter data and submitting to SPP.
• Participating in monthly city meetings, reviewing prior month’s activities, and advising cities on future market conditions.
KMEA members require billing which reflects actual costs incurred by each individual city. Using custom software developed in house, we go the extra mile and are able to efficiently and accurately distill the vast sea of SPP billing data and provide each city with a timely invoice that reflects their true and individual cost of operating within the Marketplace. It is a product that KMEA is uniquely equipped to provide.
Prospective KMEA project participants are subject to the stringent registration deadlines set forth in SPP Protocols. We realize that timing is everything when it comes to solving the significant challenges posed by pending expiration dates of existing contracts. We will meet all requirements so that you can become a KMEA city at the date that best meets the individual needs of your city.
Congestion Risk Management
Congestion cost risk is ever-present when cities utilize their firm, contracted energy resources and can contribute to electric rate instability. We participate in all phases of the Southwest Power Pool Auction Revenue Rights (ARR) and Transmission Congestion Rights (TCR) processes. Operating within risk tolerances approved by KMEA members themselves, we strive to optimize the value of each city’s firm transmission assets to achieve our ultimate objective of effectively delivering contracted energy to KMEA member cities while preserving the contract rate.