1 Kansas Wind Energy A Municipal Utility Perspective KANSAS CITY BOARD OF PUBLIC UTILITIES Blake Elliott – Director Electric Supply Planning September 2007

2 KCBPU Kansas City Board of Public Utilities, an administrative agency of the Unified Government of Wyandotte County/Kansas City, Kansas. Our mission is to be the utility of choice and the workplace of choice, while improving the quality of life in the communities we serve.

3 KCBPU Statistics Providing electric service since 1912 Service territory 127 Square Miles System peak 529 MW Qty. CustomerEnergy (GWh) Residential57, Commercial6, Industrial Other Total64,5692, Annual Report

4 KCBPU Environmental Responsibility KCBPU is the largest municipal utility in the State of Kansas. Dedicated to environmental stewardship –Early addition of renewable energy into our portfolio ahead of regulations requiring participation –Energy efficiency programs such as heat pump rebates, etc. –Active participation with customer groups managing our Federal Power Hydro Allocations (SPA, SPRA & WAPA) –Internal Environmental Services Department.

5 KCBPU Wind History 2003 Electric System Master Plan recommended continually evaluating additional energy sources to meet the long term needs of the BPU Integrated Resource Plan submitted to the WAPA recommended a review of renewable energy resources including wind Electric System Master Plan Review by Black & Veatch consulting engineers recommends between 20 & 30 MW of wind.

6 Why Participate ? Location advantage - better wind resource

7 Location Advantage Smoky Hills Class 4 mean wind speed KCBPU Class 2 mean wind speed 21% higher average wind speed at Smoky Hills

8 Why Participate ? Location advantage - better wind resource Size (> 100MW) - economies of scale Financing (private) - Production Tax Credits & accelerated depreciation Development time (faster) –site studies –site permits –landowner leases

9 Potential Municipal Utility Pitfalls Desire to own the resources outside of utilities’ core competencies Request-For-Proposal public bidding process – Wind developers consider certain information as proprietary. They may not bid if that information is open to competitor discovery. For example, indicative pricing, wind factor, turbine pricing, etc.

10 REPA Advantages Long-term contract Fixed price Saves ratepayers money Reduces future air emission, water discharge and solid waste disposal from self generated and/or purchase power energy Hedge against high market purchase prices due to high gas prices of the units on the margin

11 Why Smoky Hills? Right Development Team –TradeWind Energy Right Time Right Price

12 Outstanding Issues Transmission Curtailments Deliverability Wind generation & SPP market operations Wind energy profile and existing base unit turn down ratios Long term equipment maintenance & reliability State & Federal Regulations

13 Thank You KANSAS CITY BOARD OF PUBLIC UTILITIES Blake Elliott – Director Electric Supply Planning or