Transcript Kansas Community Wind Workshop Kansas Electric Cooperatives 28 Distribution Cooperatives 2 Generation and Transmission Cooperatives  KEPCo  Sunflower.

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: [email protected]
 Midwest Energy
Mr. Bill Dowling
email: [email protected]
 Kansas Electric Power Cooperative, Inc.
Mr. Les Evans
Telephone: 785.271.4839
email: [email protected]
Conclusion
Community of Interest
+
Communication
+
Collaboration
The best answer for all parties concerned!