KCC holds public hearing for Emporia Energy Center
By Brandy Nance
Originally published 10:01 p.m., April 30, 2007
Updated 10:02 p.m., April 30, 2007
More than 25 people from Emporia and around the state showed up for a public hearing Monday evening at Emporia State University in regards to Westar Energy’s application with the Kansas Corporation Commission.
The application was to request predetermination of the ratemaking principles and treatment that will apply to recovery in rates of the costs that Westar will be incurring by building the Emporia Energy Center, which is being constructed now six miles northeast of Emporia. The first phase of the peaking power plant is set to begin operation in the summer of 2008 with a initial generating capacity of 300 megawatts. Westar also asked for authority to apply for a rate change request. Westar expects to invest about $318 million in construction costs of the new plant and has filed a request that any predetermination apply to the investment up to the construction cost.
Jason Gray, the assistant general counsel to the KCC explained the hearing procedure and the KCC staff recommendation. After reviewing Westar’s request, staff was unable to conclude that Emporia Energy Center is in fact needed or will be useful, Gray said. Gray also said that staff concluded that the load forcast that Westar provided KCC with is not a reflection of future need. The commission will listen to the views of both parties and then issue their decision.
Gray said the public hearing is an important process of the hearings.
“The comments are not taken lightly,” Gray said. “The public hearing is a unique opportunity for the public to convey their views.”
Monday evening’s hearing opened up with a question and answer segment, in which the public could ask commission staff and Westar representatives questions about the project. Several members of the public stepped forward to ask a wide range of questions. Actual KCC commissioners were not allowed to attend the question and answer segment because it is not a part of the official record.
Niki Christopher, an attorney with the Citizens Utility Ratepayer Board (CURB), was present at the meeting and gave some comments before the floor was opened up to the public. Christopher said CURB’s role in the hearings was to represent the public.
The issue of wind energy was raised several times during the public comment time. Christopher commented on this issue.
“We like to see everything as green as possible, as cheap as possible and the air as clean as possible, but you can’t have it all,” Christopher said. “We at CURB try to keep our finger on the pulse of things, but I get a lot m ore calls from people complaining on how high their bills are. Our statuatory job is to represent customers and make sure their voice is heard in the process.”
Jim Ludwig of Westar Energy also commented on a question regarding renewable wind energy in Kansas. Ludwig said that Kansas does not have a renewable wind energy portfolio.
“I’m hopeful that our RFP will result in Westar moving forward,” he said. Ludwig said Westar received RFPs early this month.
Ludwig said the construction of Emporia Energy Center will support the company’s plan for future wind energy.
During the question and answer time, one person asked about Westar’s closure of several smaller peaking power plants following the construction of Emporia Energy Center. Greg Greenwood, vice-president of construction, answered this question and said three units were shut down at the end of the quarter with about 67 megawatts of total energy. The plants could run on either natural gas or oil.
The second part of the hearing gave the public an opportunity to testify before the commission. Six people took advantage of this portion of the program and after being formally sworn in, gave their statements before the commission. A court reporter was present and the comments will be entered into the official record that commissioners will study when making their decision.
Many different issues were raised by various members of the public.
Jeanine McKenna of the Emporia Area Chamber of Commerce and Convention & Visitors Bureau, represented a local view of Emporia Energy Center. McKenna spoke in behalf of the Chamber of Commerce and Convention & Visitors Bureau and for the Regional Development Association (RDA).
“We do support the construction of the peaking power plant,” McKenna said. “It will supply the power needs of customers during the summer months.”
McKenna said Westar has been proactive when it comes to the construction of the plant.
“We respectfully urge the approval of the Westar Energy filing,” McKenna said.
Paul Johnson, of Perry, and a representative of the Kansas Catholic Conference, had several comments to make. He said the Kansas Catholic Conference is concerned about the utility costs that low income households endure.
“Premises that are repeditly cut off for non-payment should be investigated,” Johnson said.
Johnson also said plans must be developed to access energy cutoffs of dwellings and ways to make energy more affordable.
Sarah Hill-Nelson, of Lawrence, and a representative of a renewable energy company in Lawrence, suggested three things to make Kansas more renewable energy friendly: an integrated resource plan that includes third party assessments; include the enforcement of conservation and efficiency; and she encouraged a ruling that would encourage the development of an integrated resource plan. Hill-Nelson also suggested that Westar offer a green plan for people that are willing to pay more for renewable energy.
Hill-Nelson’s comments met approval with the three-member commission, but she was told that her comments would need significant statutatory changes and should be sent instead to the appropriate state legislative bodies.
Raymond Dean, of Lawrence, a retired professor of The University of Kansas, also proposed a few ideas that included requests to limit the approval of fossil fuel peaking power plants until the company commits to a certain amount of renewable energy and require a certain amount of Westar’s peaking power plant be devoted to renewable energy.
Dean also proposed a loan program that customers could participate in with power companies to improve their energy efficiency. The customers could pay off the long-term loan with money saved on their utility bills.
Bill Morris, of Topeka, and a representative of the Kansas Sierra Club, voiced his approval of Emporia Energy Center.
“We believe that this natural gas-fired (plant) addresses some of the immediate concerns with wind energy,” Morris said.
Morris said there is still room for improvement.
“We know Westar with the help of the KCC can do much better,” he said.