September 1, 2009

Top Plants: Goodman Energy Center, Hays, Kansas

Dr. Robert Peltier, PE

Owner/operator: Midwest Energy Inc.

Midwest Energy has a history of thinking and acting independently, especially since breaking away from the Rural Utilities Service almost 15 years ago. Two years ago, when its board of directors grappled with finding a balance between purchasing and generating electricity, it decided to construct its first power plant in 37 years. A matched set of nine 8.4-MW gas engines at Goodman Energy Center now provides efficient peaking electricity, improved overall system reliability, and backstop capacity for a 325-MW electrical system that features 16% wind power generation.

Hays, located near the western edge of the Great Plains, is the largest city in northwest Kansas. Winters can be bitterly cold for the 20,000 residents, and summer temperatures routinely climb above 100F. Headquartered in Hays is Midwest Energy Inc. (MWE), formerly known as Central Kansas Electric Cooperative. MWE, an independent rural electric cooperative, serves nearly 48,000 electricity customers scattered across 41 counties in central and western Kansas. As is the case with many cooperatives, MWE did not own power generating equipment but provided electricity to its customers that was purchased through long-term capacity and peaking load contracts.

MWE broke away from the Rural Utilities Service (successor to the Rural Electrification Administration) in 1995 after privately refinancing its debt. A key reason the company elected to go it alone was management’s belief that MWE must have a more entrepreneurial spirit if it was to take advantage of the many potential market opportunities that would otherwise be off limits. MWE has since added tens of thousands of customers and is now one of the largest natural gas cooperatives in the nation. However, with independence comes the increased responsibility to provide reasonably priced and reliable electricity for customers.