The effect of a new power plant in Lyon County on electric rates in Kansas was the subject of a state hearing Monday evening at Emporia State University. More than 25 people from Emporia and around the state attended the Kansas Corporation Commission hearing.
The application was to request predetermination of the ratemaking principles and treatment that will apply to recovery of the costs that Westar will be incurring by building the Emporia Energy Center, which is being constructed 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 officials said the company expects to spend about $318 million to build 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 forecast that Westar provided KCC with is not an accurate 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 part of the process.
“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. Several members of the public stepped forward to ask questions. KCC members were not allowed to attend the question-and-answer segment because it would not be part of the official record.
Niki Christopher, an attorney with the Citizens Utility Ratepayer Board, was present at the meeting and gave some comments before the floor was opened up to the public. Christopher said the board’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 more 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, Westar’s vice president for regulatory and public affairs, 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 (request for proposals) will result in Westar moving forward,” he said. Ludwig said Westar received proposals for wind power early this month.
Ludwig said the construction of Emporia Energy Center will support the company’s plan for future wind energy.
The second part of the hearing gave the public an opportunity to testify before the commission. Six people were sworn in and gave statements before the commission. A court reporter was present and the comments will be entered into the official record.
Many different issues were raised.
Jeanine McKenna of the Emporia Area Chamber of Commerce and Convention & Visitors Bureau, spoke for the chamber and for the Regional Development Association of East Central Kansas.
“We do support the construction of the peaking power plant,” McKenna said. “It will supply the power needs of customers during the summer months.”
“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 already 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; enforcement of conservation and efficiency; and development of an integrated resource plan. Hill-Nelson also suggested that Westar offer a “green” plan for people who 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 at The University of Kansas, proposed limiting the approval of fossil fuel peaking power plants until the company commits to a certain amount of renewable energy and requiring a certain percentage 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.
The next phase of Westar’s request includes more hearings including a technical hearing which will be at 9:30 a.m. Wednesday in the first floor hearing room at the KCC’s Topeka office, 1500 S.W. Arrowhead Road. The commission must issue a decision by June 18.