Residential Lease to Purchase Kansas

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					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.
 Can’t 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 1547.
     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 load—simple
       Place power on grid—more 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.)
     Intermittency—Additional 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?
           Gas—more expensive fuel.
                Less than 5% of all generation in Kansas
           Coal—less expensive fuel.
                80% of generation in Kansas.
         What is the availability of the wind resource?
           Typical capacity factor for wind—40%
           Typical capacity factor for coal—85%
          Price issues in Community
               Wind transaction
 Price/buyback rate (cont.)
     Avoided cost rates—PURPA
       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 rates—PURPA (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: 785.623.3319
        email: bjohnson@sunflower.net

 Midwest Energy
  Mr. Bill Dowling
       email: bdowling@mwenergy.com

 Kansas Electric Power Cooperative, Inc.
   Mr. Les Evans
       Telephone: 785.271.4839
       email: levans@kepco.org
            Conclusion

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

				
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