1. Municipal Utilities & Community Wind Colin Hansen Executive Director Kansas Municipal Utilities Kansas Community Wind Workshop Cloud County Community College Concordia, Kansas October 31, 2006

2. Statewide trade association for municipal utilities Electric Natural Gas Water Wastewater Telecommunications 171 communities operating one or more municipal utilities KMU formed in 1928 Headquartered in McPherson

3. 2006 Membership

4. Public Power in Kansas 120 municipal electric utilities Largest: Kansas City BPU (65k meters) Smallest: City of Radium (23 meters) Median: 879 Customers Approximately 18% of Kansas citizens served by a municipal utility 2 joint-action agencies Kansas Municipal Energy Agency (KMEA) Kansas Power Pool (KPP)

5. Public Power in Kansas 63 municipal utilities have generating facilities City power plants Primarily utilized for peaking or reliability purposes Typically inefficient (and expensive) natural gas or diesel engines Recent rise in cost of fuel has made operating these plants very costly

6. Power Supply Contracts Baseload Generation Kansas City BPU is only municipal with actual baseload capacity Nearman Power Plant (coal) Wholesale Power Customers Full-Requirements Contracts Partial-Requirements Contracts

7. Power Supply Contracts Full-Requirements Contracts Purchase all their electricity through exclusive contract with supplier Westar, Aquila, Kansas City Power & Light, Sunflower, Midwest Energy Often smaller cities Haven, Hillsboro, Holyrood, Isabel, LaHarpe, Lindsborg, Lucas, Luray, etc.

8. Power Supply Contracts Partial-Requirements Contracts Utilize city power plant to lower cost of power supply City generates during peak periods Some outside power may come from other sources Western Area Power Administration Southwestern Area Power Administration Municipal Energy Agency (KMEA, KPP) Typically larger cities Herington, Hoisington, Holton, Horton, Hugoton, Iola, etc.

9. Right Time for Community Wind? Increasing Wholesale Power Costs Power supply costs for some cities may double over next several years Wind energy economics becoming more and more attractive Existing Power Contracts Terminated Transmission Constraints High Fuel Costs Need for Economic Development

10. What is Needed? Education Skepticism of Wind Energy Remains Reliability Questions Capacity (Peak Day) Mindset Incentives (Iowa, Minnesota) Technical & Financial Assistance Numerous Duties of the Typical Municipal Utility Manager Support from Electric Suppliers Load Following Service Impact on Existing Power Supply Contract How to Accommodate Wind Energy?

11. What is Needed? Transmission Issues Interaction between municipal utility, incumbent power supplier, and Southwest Power Pool Municipals = transmission dependent utilities (TDUs) Kansas = transmission constrained Impact on wholesale power market Municipal Champion Iowa – Waverly Light & Power Need project to demonstrate overall value to the community Questions?