Kansas Community Wind Workshop

Kansas Electric Cooperatives 28 Distribution Cooperatives 2 Generation and Transmission Cooperatives KEPCo Sunflower

All-requirements contract Provides credit support for generation/transmission component of electric cooperative Promotes equity among members Can accommodate wind energy Role of Rural Utilities Service

Community Wind No single definition of Community Wind For discussion, definition does not include typical residential/commercial interconnection. Residential >25 kw Commercial >100 kw

Cooperative members in Community Wind transaction Member/owner of cooperative Public Utility Consumer Investor in community wind project Landowner/investor wanting lease payments

Cooperative members in Community Wind transaction Cooperative has legal obligation to focus on: Member/owner of cooperative Public Utility Consumer Cooperative has economic development interest in supporting: Investor in community wind project Landowner wanting lease payments

Cooperative members in Community Wind transaction Cooperative must structure transaction with Community Wind developer in a way that will benefit the entire Cooperative. Cant harm members in the name of economic development. Terms of agreement must be fair.

Specific issues in Community Wind transaction Interconnection Operational and Reliability Concerns must be addressed. Price/buyback rate Who can or will purchase energy? What will price be? All factors must be considered to determine if project is viable.

Specific issues in Community Wind transaction Interconnection Three party contract between Transmission/Distribution owner, Southwest Power Pool (if transmission provider), and Wind Generator. Address technical and operational issues

Interconnection issues in Community Wind transaction Technical and Operational issues Safety of utility employees and the public IEEE FERC protocols and procedures Standardized contracts Common industry considerations

Interconnection issues in Community Wind transaction Technical and Operational issues (cont.) Purpose of interconnection Offset localized electric loadsimple Place power on gridmore complex Primary access to transmission. Size of interconnected wind facility Larger interconnects more complex Localized system designed for reverse flows?

Interconnection issues in Community Wind transaction Technical and Operational issues (cont.) IntermittencyAdditional costs: Requires load following in real time Requires ancillary services such as load balancing Address issues in collaborative process with interconnecting utility.

Price issues in Community Wind transaction Price/buyback rate Compare apples to apples What cost is offset by wind resource? Gasmore expensive fuel. Less than 5% of all generation in Kansas Coalless expensive fuel. 80% of generation in Kansas. What is the availability of the wind resource? Typical capacity factor for wind40% Typical capacity factor for coal85%

Price issues in Community Wind transaction Price/buyback rate (cont.) Avoided cost ratesPURPA The cost of acquiring energy through another source. Other source in this case would be cost of purchases or utility owned generation at the same delivery point. Each supplier will have different avoided cost at each delivery point.

Price issues in Community Wind transaction Price/buyback rate (cont.) Avoided cost ratesPURPA (cont.) Intermittency (again). Avoided cost will look at energy portion of cost, not demand. Installation of new wind does not offset need for capacity. Those costs are not avoided.

Interconnection Contacts Sunflower Electric Power Corp. Mr. Bob Johnson Telephone: Midwest Energy Mr. Bill Dowling Kansas Electric Power Cooperative, Inc. Mr. Les Evans Telephone:

Conclusion Community of Interest + Communication + Collaboration The best answer for all parties concerned!