KANSAS UTIL BUILDING WIRES, BUYS WIND

Westar Energy to Expand Wind Energy Portfolio; New Agreements to More Than Double Westar's Wind Energy
December 14, 2010 (Westar via MarketWire)

"…Westar Energy and two wind development companies have reached tentative agreements for Westar to purchase [369 megawatts of wind energy-generated] electricity produced by them at Kansas wind farms to be developed. On Nov. 10, Westar filed with the Kansas Corporation Commission for approval of the purchase agreements…

"Westar is entering into a contract to purchase 201 MW of energy from the Post Rock Wind Farm to be developed by Wind Capital Group…The project plans to use General Electric 1.5 MW wind turbines. A contract with Duke Energy Generation Services will be for about 168 MW of wind energy produced at the Ironwood Wind Power Project site…already owned by Westar, but which Westar made available to developers. The current contract accounts for about one-third of Ironwood's 500 MW potential. The project plans to use Siemens 2.3 MW wind turbines which will be supplied by the recently opened Siemens nacelle facility in Hutchinson…"

Kansas is affluent with wind assets. (click to enlarge)

"The wind projects will be constructed and operated by the wind developers with Westar agreeing to purchase 100 percent of the electricity they generate through long-term agreements. Both projects are scheduled to begin construction in 2011 and be in service by the end of 2012. The first 200 MW of wind resources contemplated in the agreements will satisfy Westar's renewable energy needs through 2015. With the additional 169 MW, Westar will be well on its way to meeting the 15 percent renewable energy requirement that becomes effective in 2016.

"Westar Energy owns 149 MW of wind generating capacity at its Central Plains and Flat Ridge Wind Farms and has previous power purchase agreements for 146 MW of wind energy. Westar Energy also purchases about 6 MW of electricity produced using landfill gas through an agreement with Waste Management Inc. from a Topeka landfill."

The Prairie Wind Transmission system will be able to unify wind resources across the state and exchange wind power with Oklahoma, making wind less variable. (click to enlarge)

"In 2009, Kansas passed a renewable energy standard that requires investor-owned utilities to commit to renewable energy equal to 10 percent of their average summer peak. The renewable energy standard increases to 15 percent in 2016 and 20 percent in 2020. Under the law, Westar Energy's 10 percent requirement is about 500 MW.

"Wind energy development historically has been limited because of transmission constraints. Westar Energy is a leader in Kansas, working [on a multiyear expansion of] transmission infrastructure needed to support the development of wind energy…[I]n the past year, Westar placed into service more than 90 miles of new high-voltage transmission between Wichita and Salina and is building a new high-voltage line from Rose Hill to the Oklahoma state line by mid-2012. In addition, Westar Energy is a 50 percent owner of…[Prairie Wind Transmission LLC’s] 345 kilovolt line that will connect a substation near Wichita to a new substation northeast of Medicine Lodge and extend south to Oklahoma…[and has committed] to build several new transmission projects over the next decade…[as approved by] the Southwest Power Pool…"