September 1, 2009

Top Plants: Goodman Energy Center, Hays, Kansas

Dr. Robert Peltier, PE

Integrated Planning Process

MWE’s planning process for long-term electricity resources is encapsulated in its triannual long-range resource plan, which is required by the Department of Energy and the Western Area Power Administration, which manages the region’s electricity market. The company’s Risk Integrated Resource Plan (RIRP) examined the range of electricity supply options available and then considered those options in light of its key business objectives of rate stability, supply reliability, competitive rates, and corporate financial strength. These objectives then guide the selection of a combination of long-term fixed-price electricity purchases and purchases from the unpredictable spot market.

The 2007 RIRP update concluded that the prudent approach was a combination of two long-term baseload purchase contracts of 75 MW each and construction of a 75-MW block of peaking capacity. Gary Groninger, senior project manager at Burns & McDonnell, who supported MWE in development of its RIRP, said, "our analysis continued to show that these reciprocating engines were an excellent fit in meeting MWE’s needs particularly with wind as a part of their generating portfolio. These engines have an excellent baseload heat rate and show very little degradation in efficiency even at a 50% load level. We expect MWE to operate these units more than 1,500 hours per year."

MWE’s 2008 annual report notes that the company signed a contract that year to take an additional 24 MW of wind energy from the Smoky Hills Wind Farm in Ellsworth and Lincoln Counties. By the end of 2009, MWE will be purchasing 49 MW of wind energy from the Smoky Hills Wind Farm. Wind energy will then constitute over 16% of MWE’s retail peak load, the highest percentage among Kansas electric utilities.