KCP&L

Source: Energy Digital

Date :2/18/2008 2:22:05 AM

As Kansas City continues to grow, the need to supply its communities with clean, reliable and affordable energy is a key concern so KCP&L has developed a comprehensive long-term energy plan

Written by Ian Armitge and produced by Michael Alexander Jones

Kansas City Power and Light Company (KCP&L) is an electric utility company serving the Kansas City metropolitan area. Operating from headquarters in Kansas City, Missouri, KCP&L has evolved since its formation into a full-service energy provider and resource.

Founded in 1882, it has become one of the Midwest’s most affordable energy suppliers because of its leadership in fuel procurement, plant technology and efficient power production and distribution.

KCP&L today services over 500,000 customers in 24 western Missouri and eastern Kansas counties, which is a service territory of around 4,600 square miles. Delivering that power requires, says KCP&L, 1,700 miles of transmission lines, more than 10,000 miles of overhead distribution lines, and approximately 3,400 miles of underground distribution lines.

The company, which is a wholly owned subsidiary of Great Plains Energy Inc., operates eight stations with 25 generating units providing power to its customers and sells into the wholesale market. It has over 4,000 megawatts of efficient generation assets in operation or under construction and, significantly, around 75 percent of its fuels costs are from lower cost coal.

During 2006 KCP&L reported revenues of $1.14 billion and core earnings of $1.80 per GXP share.

Planning ahead

A wise, responsible utility, KCP&L knows the importance of a comprehensive energy plan and has spent many years developing one designed to meet the future energy, economic and environmental needs of Kansans. Emphasizing the importance of balance, the 2005-2010 plan was approved by Missouri Public Service Commission in 2005 and by the Kansas Corporation Commission that same year.

Elements of it, developed through a collaborative approach, include new electricity generation from coal and wind; environmental upgrades at existing power plants; investment in affordability, efficiency and demand response programs; and transmission and distribution network facilities’ improvements. Many of these elements, including wind, energy efficiency programs and accelerated environmental upgrades, were added as part of the planning process with the community.

But why is it necessary? Well, as the Kansas City area continues to grow, the need to supply its communities with clean, reliable and affordable energy is a major concern for KCP&L.

KCP&L began the process of examining the role it could play in 2003, when the utility started meeting with customers and community leaders to discuss developing a long-term energy plan. The current plan is therefore based on input and ideas from hundreds of people throughout the Kansas City metropolitan area.

Who will pay?

This ambitious, yet highly necessary plan will cost more than $1 billion. To raise this cash rate adjustments have been introduced. Although an often unpopular choice, it is important to remember these investments will be necessary to safeguard Kansans’ futures.

The first rate case was filed in 2006, with rate adjustments going into effect for customers in 2007. The last rate case defined in the agreements is expected to be filed in 2009, with rates effective around the time the coal plant goes into service.

Despite the rises, in national comparisons KCP&L still ranks among those utilities offering the lowest average prices for all customer segments and has the least number of power interruptions due to outages. To better serve customers, the utility has also been a leader in using technologies such as e-commerce and automated meter reading.

According to KCP&L, investing in such technologies is a signal it will continue to be committed to providing customers with electricity rates that are significantly below what consumers pay in other parts of the country.

Environmental stewardship

KCP&L is committed to sound environmental practises that maintain what it calls “wildlife and biological diversity”. It pledges through its environmental policy to participate in and contribute to efforts that “recognize and promote environmental stewardship, continually seek to understand and address concerns about the environment and strive to improve, protect and conserve beyond the requirements of the law.”

This sort of commitment is nothing new; the utility has been dedicated to sound environmental practices for many years now, and remains devoted to being a leader in providing clean and affordable energy to the region. That commitment is part of what is driving the comprehensive energy plan – which is a highly visible demonstration of KCP&L’s pledge to protect and preserve the environment.

Energy optimizer

Always trying to get that little bit better and do that little bit more, KCP&L recently announced a contract extension - with Honeywell International Inc. - to the utility’s Energy Optimizer program. Energy Optimizer, which is managed by Honeywell, is designed to reduce peak energy consumption from June to September when air-conditioning use reaches its highest levels.

Launched in 2005, the program features the installation of programmable thermostats in small businesses and residential homes. The thermostats include a paging system that allows KCP&L to communicate with the thermostats and cycle air conditioners off and on for brief intervals. This only happens on the hottest days of the year, when energy consumption peaks.

This Energy Optimizer is part of KCP&L’s strategy for meeting Kansas City’s future energy needs. 18,000 thermostats have already been installed, exceeding the three-year program goal in less than two years. By extending the program, the utility plans to install an additional 13,000 thermostats.