Many cities have many good questions about the Kansas Power Pool and how it might benefit their communities. Some of these include...
- What is a power pool?
- What is the legal status of KPP?
- Why was KPP formed?
- Why is it important to my community?
- How does KPP fund its operation?
- How many cities currently participate in KPP?
- How do I get more information?
- How can my city participate?
- How is KPP governed?
- How is KPP staffed?
- What is the relationship between KPP, KMEA, KMU?
- What does KPP currently have as a power supply?
- Does KPP own any generation assets or have any debt?
As it applies to KPP, a power pool is a group of individual cities working together to provide reliable, low-cost energy and capacity to its members through joint planning and acquisition of market resources to meet current and future energy and capacity needs.
KPP is a quasi-municipal joint action agency created under Kansas Statutes 12-885 to 12-8,111 and operates much like a municipality in terms of open meetings and public records. KPP is not, however, subject to Kansas budget stautes or the cash basis laws. KPP statutorily exists for the purpose of planning, studying and developing supply, transmission and distribution facilities and programs and for the purpose of securing an adequate, economical and reliable supply of electricity and other energy and transmitting the same for distribution through the distribution systems of member cities.
KPP was formed when member cities were given notice that their long time grandfathered supply contracts were being cancelled. This cancellation resulted from the Southwest Power Pool's (SPP) Regional Transmission Organization (RTO) and the need for SPP to become the transmission provider to all customers under the RTO footprint. Without a contract with their historical provider, the cities were required to make application to SPP for transmission service. Each application came with a study requirement and a deposit of up to $25,000. By pooling together, these common needs were addressed through collectively working together for their transmission application and study needs at a much-reduced cost to each city.
Working together as municipalities for the betterment of service to all municipal entities in the state guarantees each participant quality representation on issues relevant to each city. Specifically, as an SPP transmission participant, each city is responsible for supplying a 10-year forecast of their load and capabilities to meet that load. Future resources must be accounted for to meet reserve requirements. Existing transmission rights need to be protected and expanded to meet growth requirements. Reliable electric service at the lowest possible cost means planning for the future in a prudent way. Working together allows for the sharing of needed resources to ensure that this goal is met in the most economical manner. Remaining competitive in this ever-changing energy market is imperative for the health and welfare of every community.
KPP receives an administrative fee that is part of the wholesale energy rate paid by member cities. This is the only source of funding for KPP's operation. KPP's wholesale rate is set by the Membership Committee each December for the following year based on load and expense projections. The rate is set to allow the KPP budget to break even at the end of the fiscal year.
KPP membership includes 23 cities that buy wholesale energy through KPP. Eight other cities belong to KPP as non-voting members, but buy no energy through KPP.
Please contact any of the KPP representatives for additional information about KPP.
The first step is to send a letter of interest to either the KPP General Manager, or the KPP Board President.
KPP's is governed by a nine-member Board of Directors. Each member receiving services from KPP has a voting delegate on the Membership Committee, from which Board members are elected. The Membership Committee also approves the annual wholesale rates for the Pool and the annual operating budget for KPP. Stan Luke, Burlington, serves as President of the Board of Directors and Chairman of the Membership Committee.
KPP currently has six staff members: Mark Chesney (General Manager & CEO); Larry Holloway (Assistant General Manager for Operations); Vickie Matney (Controller); Carl Myers (Director of Member Services); Ivan Seward (Senior Accountant); Ahmad Khan (Senior Director of Wholesale Electric, Origination, and Resource Planning).
KPP is a joint effort by member cities to combine assets and resources to gain the greatest economic efficiency and value for cities. All members of KPP are also members of KMU. Many are also members of KMEA.
Initial resources in KPP include power supply arrangements originating at KMEA, GRDA, SWPA, Nearman and OMPA, as well as each of the cities' own generating resources. KPP has since added additional resources including Westar's Jeffrey Energy Center, Greensburg Wind Farm, Marshall County Wind Farm, and an ownership share of the Dogwood Energy Facility. In addition, the Nearman contract has been terminated.
Seventeen KPP member cities own their own generation totaling about 162 MW's of generating capacity. In April 2012, KPP acquired a 40-MW share of a 650 MW combined cycle natural gas-fired power plant in Missouri. KPP issued revenue bonds to finance the acquisition. In 2015, KPP issued revenue bonds to acquire an additional 20 MW's of the Dogwood Energy Facility.