1. Rural
Property
Trends
Roadshow
Wind
Energy
in
Kansas
Norton,
Kansas
December
4,
2013

2. Discussion
Goals
• Context
/
Info
– Wind
Energy
in
Kansas
– Regional
Electricity
Marketplace
– Development
and
Decision-­‐making
– Leadership
and
Policy
• Key
QuesOons
/
Discussion

3. Key
ObjecOons
to
Wind
• Wind
costs
too
much
relaOve
to
other
fuel
sources.
• Wind
is
unreliable.
• There
isn’t
enough
wind
energy
available.
• Wind
development
is
ugly.
• Wind
is
uniquely
dependent
upon
gov’t
intrusion
and
market
manipulaOon.
• Wind
is
unproven.
• Wind
represents
ideas/people
we
don’t
trust.

4. Wind
Energy
/
Kansas
• Wind
InstallaOons
– Installed
Wind
Capacity:
2,713
megawaWs
(MW).
State
Rank:
9th.
– Number
of
Wind
Turbines:
1,592
turbines.
State
Rank:
9th.
– Wind
Projects
Online:
23
wind
projects
– Wind
Capacity
Added
in
2012:
1440.7
MW.
State
Rank:
the
3rd
most
during
2012,
and
9th
fastest
growing
state.
– Wind
Capacity
Added
in
2011:
199.8
MW

5. Wind
Energy
/
Kansas
Wind Farms and Wind Resource Potential in Kansas
!
Meridian
Way
201MW
!
!
!
!
#
!
!
!
!
!
Smoky
Hills
Post Rock 249MW
201MW
#
#
Central
Plains
99MW
!
!
#
!
!
!
!
!
Cimarron
Spearville
1-2
296MW 1-3
249MW
!
#
!
Buffalo
Dunes
"
Gray County
112.2MW
Ironwood
Ensign
168MW
99MW Shooting
!
Star Greensburg
105MW 12.5MW
#
#
# #
!
!
!
!
!
##
Elk River
150MW
#
Flat
Flat
Ridge Ridge 2
100MW 470MW
Caney
# River
# #
!
!
200MW
!
Sou rce: In stitu te for P olicy & S ocial Re se arch , The Un iversity of K an sa s; da ta fr om th e Natio nal Re newa ble E ne rgy
Lab ora to ry with wind far m d ata from the K ansa s Wi nd Reso urce P lan ner a nd the K an sas Co rpo ratio n Commi ssio n.
MW - me ga watts
Kansas Wind Farms (2013)
Existing (2,712 MW)
#
Wind Power Density at 50m (W/sq. m; 2009)
Poor (0 - 200)
"
Under Construction
Marginal (200 - 300)
!
Proposed
Fair (300 - 400)
Good (400 - 500)
Excellent (500 - 600)
Outstanding (600 - 800)

6. Wind
Energy
/
Kansas
• Wind
Economy
Total
direct
and
indirect
jobs
2012:
4001-­‐5000.
Rank:
5th.
Capital
investment:
over
$5
billion
dollars
Annual
land
lease
payments:
over
$7,900,000
NaOonwide,
the
wind
industry
has
over
550
manufacturing
faciliOes
producing
products
for
the
wind
industry
that
range
from
blade,
tower
and
turbine
nacelle
assembly
faciliOes
to
raw
component
suppliers
including
fiberglass
and
steel.
Number
of
manufacturing
faciliOes
in
Kansas:
7
faciliOes.
– Major
wind
turbine
manufacturer
Siemens
opened
a
$50
million
nacelle
assembly
facility
in
Hutchinson,
Kansas
in
November
2010,
the
effects
of
which
will
be
felt
throughout
the
Kansas
supply
chain.
–
–
–
–

7. Wind
Energy
/
Kansas
• Wind
Resource
– Percentage
of
Kansas'
electricity
provided
by
wind
in
2012:
11.4
percent.
State
Rank:
6th.
– Equivalent
number
of
homes
Kansas
wind
farms
now
power:
over
840,000
average
American
homes.
– Wind
potenOal
at
80
meters
hub
height
is
952,371
MW.
State
Rank:
2nd
best
wind
resource
in
the
U.S.
– Raw
wind
power
is
capable
of
meeOng
more
than
90
Omes
the
state's
annual
current
electricity
needs.

8. Wind
Energy
/
Kansas
EsOmates
of
Windy
Land
Area
&
Wind
Energy
PotenOal
by
State
for
areas
>=30%
Capacity
Factor
at
80m
State
Total
(km2)
Excluded
(km2)
Available
(km2)
Available
%
Windy
(%
of
state)
Land
Excluded
Kansas
211,861.3
21,387.1
190,474.2
89.38
10.1
Installed
Capacity
(MW)
Annual
GeneraDon
(GWh)
952,370.9
3,646,590
“Excluded”
(3
mi
buffer)
• Designated
urban
areas
• NaOonal
Parks,
Monuments,
Preserves
• Waterways
• Does
not
include
FAA
radar
installaOons
or
areas
like
the
Heart
of
the
Flint
Hills
Na#onal
Renewble
Energy
Laboratory,
updated
4/13/11

9. Map
of
ISOs
and
RTOs
6
ISOs
in
North
America:
CAISO,
NYISO,
ERCOT,
AEISO,
IESO,
NBSO
4
RTOs
in
North
America:
PJM,
MISO,
SPP,
ISO-­‐NE
9

10. Southwest
Power
Pool
• Who
is
SPP?
• Independent,
non-­‐profit,
Regional
Transmission
OrganizaOon
• ~500
employees
• Membership
in
9
states
• Arkansas,
Kansas,
Louisiana,
Mississippi,
Missouri,
Nebraska,
New
Mexico,
Oklahoma,
and
Texas
• Manages
reliability
from
LiWle
Rock,
Arkansas
• 24
x
7
operaOons
• Full
redundancy
and
backup
site
10

11. Our
Major
Services
• FacilitaOon
• Standards
Sesng
• Reliability
CoordinaOon
• Compliance
Enforcement
• Transmission
Service/
Tariff
AdministraOon
• Transmission
Planning
• Market
OperaOon
• Training
Regional
Independent
Cost-­‐effec3ve
Focus
on
reliability
11

12. Regional
Electricity
Marketplace
• The
Southwest
Power
Pool
– Centralized,
regional
transmission,
distribuOon,
and
balancing
authority
– Moving
to
an
Integrated
Marketplace
with
Day
Ahead
Market
–
commodiDzing
electricity
– Efficiencies
and
economies
of
scale
at
work
• GeneraOon,
UOliOes,
Consumers
• Scale,
Scope,
Dispatch
– Electricity
producOon
&
distribuOon
in
(esp.
rural)
America
has
been
balkanized
and
anachronisOc
–
exisOng
boundaries
increasingly
cumbersome
– Loads
of
unanswered
quesOons,
but
change
is
coming

13. Balancing
Authority
• With
the
Integrated
Marketplace,
SPP
will
assume
the
role
of
the
Balancing
Authority
(BA)
• Balancing
Authority
is
the
responsible
enOty
that
integrates
resource
plans
ahead
of
Ome,
maintains
load-­‐interchange-­‐generaOon
balance
within
a
Balancing
Authority
Area,
and
supports
InterconnecOon
Frequency
in
Real-­‐
Time
1
Balancing
AuthoriDes
(as
it
exists
today)
SPP
–
BA
(as
it
exists
tomorrow)
6
2
5
7
4
3
8
9
10
13
11
14
12
15
16
SPP
13

14. SPP
Roles
and
ResponsibiliOes
• Post
implementaOon
of
the
Integrated
Marketplace,
SPP
is
responsible
for:
• Providing
all
market
services
for
Energy,
OperaOng
Reserve,
and
Transmission
Service
in
accordance
with
the
Open
Access
Transmission
Tariff
(OATT)
and
Market
Protocols
• Managing
and
administering
the
Tariff
• AcOng
as
the
centralized
SPP
Balancing
Authority
• Providing
reliable
operaOon
of
the
transmission
system
• Administering
the
Day-­‐Ahead,
Real-­‐Time,
OperaOng
Reserve,
and
Transmission
CongesOon
Rights
Markets
14

15. Integrated
Marketplace
Net
Benefits
• Projected
savings
around
$45-­‐$100
Million/Year
• Reduce
total
energy
costs
through
centralized
unit
commitment
while
maintaining
reliable
operaOons
• Day-­‐Ahead
Market
allows
addiOonal
price
assurance
capability
prior
to
real-­‐Ome
• Includes
new
markets
for
OperaOng
Reserve
to
support
implementaOon
of
Consolidated
Balancing
Authority
(CBA)
and
facilitate
reserve
sharing
15

16. Development
&
Decision-­‐making
•
Iowa
– Wind
generaOon
potenOal
at
80
meters
=
570,714
MW.
7th
best
wind
resource
in
the
U.S
– Wind
Jobs
=
6001-­‐7000.
State
Rank
=
3rd
– Capital
investment:
over
$9.8
billion
– Annual
land
lease
payments:
over
$16,000,000
– Wind-­‐RelaOng
Manufacturing:
15
faciliOes.
– Installed
Wind
Capacity:
5,133
megawaWs
(MW).
State
Rank:
3rd
– Wind
Projects
Online:
100
wind
projects
– Percentage
of
Iowa's
2012
electricity
provided
by
wind:
24.5
%.
Equivalent
number
of
homes
Iowa
wind
now
powers:
over
1.3
million
average
homes
– Iowa
wind
power
is
capable
of
meeOng
more
than
44
Omes
the
state's
current
electricity
needs
– Republican
governor,
Republican
House,
Democrat
Senate
•
Kansas
– Wind
generaOon
potenOal
at
80
meters
=
952,371
MW.
2nd
best
wind
resource
in
the
US.
– Wind
Jobs
=
4001-­‐5000.
State
Rank
=
5th
– Capital
investment:
over
$5
billion
– Annual
land
lease
payments:
over
$7,900,000
– Wind-­‐RelaOng
Manufacturing:
7
faciliOes.
– Installed
Wind
Capacity:
2,713
megawaWs
(MW).
State
Rank:
9th.
– Wind
Projects
Online:
23
wind
projects
– Percentage
of
Kansas’
2012
electricity
provided
by
wind:
11.4
%.
Equivalent
number
of
homes
Kansas
wind
now
powers:
over
840,000
average
homes
– Kansas
wind
power
is
capable
of
meeOng
more
than
90
Omes
the
state's
current
electricity
needs
– Republican
governor,
Republican
legislature

17. Development
&
Decision-­‐making
• In
Iowa
– MidAmerican
Energy
in
construcOon
on
1050MW
of
new
wind
in
IA
by
2015
• 448
turbines,
power
for
317,000
addiOonal
avg.
households.
• Up
to
1,000
new
construcOon
jobs
over
2
years,
40
permanent
jobs.
• $1.9
billion
in
new
investment.
Will
be
the
largest
single
economic
development
investment
in
the
history
of
the
state.
• $3
million
annually
in
new
landowner
payments,
$360
million
in
addiOonal
property
tax
revenues
over
30
years,
across
five
counOes.
• All
of
the
blades
will
be
manufactured
at
Siemens’
Fort
Madison,
IA
facility,
while
the
nacelles
will
be
manufactured
at
Siemens’
Hutchinson,
KS
facility.
• The
expansion
will
not
add
customer
costs
and
will
help
stabilize
electrical
rates.
Aver
the
first
350
megawaWs
of
new
generaOon
capacity
are
installed,
a
$3.3
million
rate
reducOon
will
take
effect.
By
2017,
the
rate
reducOon
will
increase
to
$10
million
per
year.
• Once
new
turbines
are
operaOng
the
company
expects
to
produce
39%
of
its
retail
generaOon
from
wind
power
(coal
=
33%).

18. Development
&
Decision-­‐making
• In
Iowa
– “Facebook
has
selected
a
Des
Moines
suburb
as
the
site
for
its
next
data
center.
The
social
media
giant
plans
to
break
ground
this
summer
in
Altoona,
Iowa,
on
a
$300
million
data
center
that
could
be
the
first
of
three
faciliOes
there.
Much
of
the
news
coverage
has
focused
on
the
$18
million
in
tax
credits
awarded
by
the
state,
but
Facebook
had
another
reason
to
‘like’
Iowa:
wind
power.”
Midwest
Energy
News
– “A
$1
billion
data
center
reportedly
has
picked
Iowa
over
Nebraska,
despite
an
effort
by
the
state
to
sweeten
its
economic
incenOves
for
such
large
projects.
And
Iowa
appears
poised
to
get
another
high-­‐tech
plum:
an
addiOonal
$400
million
investment
at
an
exisOng
data
center
for
Google
just
south
of
Council
Bluffs.”
Omaha
World
Herald

19. Development
&
Decision-­‐making
•
•
•
•
Oklahoma
– AEP-­‐PSO
adding
600MW
wind
• “American
Electric
Power-­‐Public
Service
Co.
of
Oklahoma
said
it
originally
planned
to
purchase
up
to
200
megawaWs
of
wind
energy
but
contracted
for
an
addiOonal
400
megawaWs
aver
seeing
extraordinary
pricing
opportuniOes
that
will
lower
uOlity
costs
by
an
esOmated
$53
million
in
the
first
year
and
even
more
thereaver.”
Nebraska
– OPPD
adding
400MW
wind
• "It
had
to
do
with
the
prices,"
OPPD
spokesman
Mike
Jones
said,
when
asked
why
the
Omaha-­‐
based
uOlity
made
such
a
large
power
purchase.
– LES
adding
100MW
wind
(from
Oklahoma)
– NPPD
turned
down
lowest
cost
offers
on
200MW
(1700MW
submiWed
on
RFP)
– LB104
extended
sales
tax
abatements
to
RE
Colorado
– “Xcel
Energy
earlier
this
year
set
a
new
record,
generaOng
60.5%
of
its
electricity
using
the
wind,
up
from
its
previous
56.7%
record.”
– Xcel
buying
an
addiOonal
550MW
of
wind
in
Colorado
“based
on
low
price
alone.”
– State
RPS
expanded
and
now
includes
largest
RECs,
with
consumer
protecOons
and
in-­‐state
producOon
incenOves
Minnesota
– Xcel
Energy
adding
750MW
wind
• “The
company
said
the
projects
are
such
a
good
deal
that
ratepayers
will
save
$225
million
over
the
projects’
lives.”

20. Development
&
Decision-­‐making
• Kansas
– Westar
buying
addiOonal
200MW
wind
from
KS
wind
farm,
but
also
raising
rates
and
shiving
rate
burden
to
residenOal
for
coal
plant
retrofit.
Enviro
rider
allows
cost/rate
recovery
w/o
rate
case.
– KCPL
not
proacOve
on
wind
and
fighOng
solar
RPS
in
MO,
commiWed
to
coal
capacity.
– Despite
approx.
19,000MW
of
wind
cued
in
the
service
territory,
Sunflower
declined
very
low-­‐priced
bids
for
wind
capacity,
reportedly
in
order
to
protect
Holcomb
2.
– In
general,
KS
uOliOes
seem
to
be
dragging
their
feet
on
wind
energy
(esp.
relaOve
to
cost,
benefits,
available
resource,
and
local
economic
impacts)
while
invesOng
in
coal
capacity
(passing
costs,
risks
&
liabiliOes
on
to
KS
ratepayers,
and
providing
benefits
to
coal
producing
states
and
transport
enOOes).
– Lack
of
comprehensive,
coordinated,
transparent,
accountable
resource
planning?

21. Leadership
&
Policy
• Resource
Planning
– Complicated
and
closed
process,
liWle
public
involvement
or
oversight
– KCC
recently
received
maximum
fine
for
violaOon
of
KOMA
– KS
has
no
meaningful
IRP
process
• RES
/
RPS
– OpposiOon
fueled
by
parOsan
rhetoric
and
ideological
misinformaOon
and
influence,
funded
by
market
and
poliOcal
opponents
• Economic
Development
– Historic
status
quo,
poliOcal
influence,
and
outdated
energy
market
analysis
too
oven
drives
energy-­‐related
economic
development
decisions
and
opportuniOes.
Do
we
want
jobs
and
investment
only
for/from
one
sector?
• Public
Health,
Environment,
Water
– Shared
social
benefits
are
combining
with
basic
market
forces
and
fuel
cost
realiOes
to
encourage
regulated
investor-­‐owned
uOliOes
to
reduce
coal
dependence
for
other
fuel
sources,
esp.
natural
gas
and
wind
– Blaming
EPA
isn’t
going
to
cut
it
–
wind
is
already
lowest
cost
resource
in
much
of
our
region,
pre-­‐regs
affecOng
coal
plants

22. Key
QuesOons
/
Discussion
•
•
•
•
•
•
•
•
Wind
– Costs
too
much?
– Unreliable?
– Not
enough
available
and
accessible?
– Ugly?
– The
result
of
gov’t
intrusion
and
market
manipulaOon?
– Unproven
technology
and
source?
– Represents
ideas/people
we
don’t
trust?
– What’s
up
with
Community
Wind?
– Lesser
Prairie
Chickens
and
the
ESA?
– Tax
abatements,
incenOves,
and
PILOTs?
– De-­‐commissioning
(or
replacing)
infrastructure
at
end
of
life?
How
do
rural
communiOes
and
stakeholders
(esp.
landowners
and
ratepayers)
get
a
seat
at
the
table
re:
electricity
resource
planning
and
related
economic
development?
What
are
the
opportuniOes/challenges
for
KS
(esp.
rural
KS)
in
a
regional
electricity
marketplace?
What
role
for
wind
(or
other
generaOon
sources)
in
a
regional
electricity
marketplace?
Distributed
vs.
centralized
energy
producOon?
How
do
we
best
manage
change
at
this
scale
and
rate?
How
do
we
(as
community,
state,
interest
group)
make
best
long-­‐term
decisions
here?
How
do
we
remain
open
to
the
best
available
answers/informaOon,
rather
than
pre-­‐
determined
outcomes?

24. Wind
is
uniquely
dependent
upon
gov’t
intrusion
and
market
manipulaOon?
Energy Subsidies Black, Not Green
A study released by the Environmental Law Institute, a nonpartisan research and policy organization, shows that the federal
government has provided substantially larger subsidies to fossil fuels than to renewables. Subsidies to fossil fuels totaled approximately $72 billion over the seven-year study period, while subsidies for renewable fuels totaled $29 billion over the same period.
The vast majority of subsidies support energy sources that emit high levels of greenhouse gases when used as fuel. Moreover,
just a handful of tax breaks make up the largest portion of subsidies for fossil fuels, with the most significant of these, the
Foreign Tax Credit, supporting the overseas production of oil. More than half of the subsidies for renewables are attributable to
corn-based ethanol, the use of which, while decreasing American reliance on foreign oil, has generated concern about climate
effects.These figures raise the question of whether scarce government funds might be better allocated to move the United States
towards a low-carbon economy.
Environmental
Law
InsOtute
and
the
Woodrow
Wilson
InternaOonal
Center
for
Scholars;
Es#ma#ng
U.S.
Government
Subsidies
to
Energy
Sources:
2002-­‐2008
Federal Subsidies (2002-08)
FOSSIL FUELS
RENEWABLE ENERGY
$72.5 billion
$29.0 billion
$12.2 billion
$2.3 billion
TRADITIONAL
RENEWABLES
CARBON CAPTURE
AND STORAGE*
$0.3
$2.0
$6.0
(outer ring)
$53.9
(inner circle)
$6.2
$16.3
$5.0
$11.8
$16.8 billion
CORN ETHANOL**
Climate protecting
$70.2 billion
TRADITIONAL
FOSSIL FUELS
Damaging
Notes: *Carbon capture and storage is a developing technology that would allow coal-burning utilities to capture and store their carbon dioxide emissions.
Although this technology does not make coal a renewable fuel, if successful it would reduce greenhouse gas emissions compared to coal plants that do not
use this technology. **Recognizing that the production and use of corn-based ethanol may generate significant greenhouse gas emissions, the data depict
renewable subsidies both with and without ethanol subsidies.
Sources: Internal Revenue Service, U.S. Department of Energy (Energy Information Administration), Congressional Joint Committee on Taxation, Office of
Management and Budget, & U.S. Department of Agriculture, via Environmental Law Institute.
Infographic by Tommy McCall
For press inquiries contact Brett Kitchen at 202-939-3833. Full report text and pdf of this graphic may be found online at: http://www.eli.org/pressdetail.cfm?ID=205
©Environmental Law Institute.

25. What’s up with Community Wind?
• Economies
&
efficiencies
of
scale
– Available
capital
– Demand
&
distribuOon
of
electricity
• Regional
marketplace
&
integraOon
• Infrastructure
• Investment
vs.
return
– Net
metering
– PPA
terms
• Leadership
&
policy
– Self-­‐determinaOon
&
engagement
– Fuel
source
compeOOon
– Resource
planning
–
interesOng
quesOons
re:
SPP
integrated
market
• AWEA
community
wind
resources
– Community
Wind
Basics
• hWp://awea.rd.net/Issues/Content.aspx?ItemNumber=4593

26. Lesser Prairie Chickens and the ESA?
• December
2012
-­‐
FWS
recommendaOon
to
list
the
lesser-­‐prairie
chicken
as
a
threatened
species.
• June
2013-­‐
FWS
announced
it
would
delay
finalizing
the
decision
to
list
the
lesser
prairie-­‐chicken
under
the
Endangered
Species
Act
unOl
the
end
of
March
2014.
• Concerns
over
the
accuracy
of
data,
so
agency
soliciOng
addiOonal
informaOon.
• According
to
the
results
of
a
seven-­‐year
KSU
study,
wind
power
development
does
not
cause
significant
impacts
to,
and
may
in
fact
benefit,
greater
prairie
chicken
populaOons.
• AWEA
resources
– Issues:
Prairie
Chickens
and
Wind
Energy
• hWp://www.awea.org/Issues/Content.aspx?
ItemNumber=834