Feb. '09

   With all of the emphasis on our state’s economic well being, there’s another issue you may not have heard about that’s also very important to all Kansans. What’s at stake in this issue is a western Kansas utility seeking legislative approval for two proposed coal-fired power plants.

   Sunflower Electric Power Corp. is determined to build these plants near Holcomb in Finney County. Kansas Gov. Kathleen Sebelius’ administration has been blocking the plants for more than a year because of their potential carbon-dioxide emissions.

   Expansion of the Holcomb station is being driven by growing energy needs among electric cooperatives in Kansas and neighboring states. Power generated from the Holcomb station expansion could supply additional electricity for 1.5 million consumers in seven states.

   Implications of this decision extend far beyond Holcomb. Concerns about the uncertainty of our state’s regulatory environment have been echoed by independent businesses, manufacturers, agriculture producers, and other stakeholders from Scammon to Saint Francis, from Rolla to Reserve, and all points in between – not to mention those outside our state’s borders who ever thought to do business in Kansas.

   Such demand requires additional generation facilities. These new facilities will not only reinforce this region’s power supply needs, but the investment and creation of jobs from plant construction and operations will provide additional taxes and employment in western Kansas.

   The proposed project is expected to cost more than $3.6 billion and has the potential for 1,500 construction jobs. The new plants would be located on the existing 360-megawatt Holcomb station site. The two additional supercritical pulverized coal units are each capable of generating 700 megawatts.

   Construction of these new units, next to existing generation units, will allow for common use of a number of facilities, including the rail spur, coal receiving and handling system, water treatment, waste disposal system and warehouse and control facilities. This will minimize overall ground disturbance and environmental impacts associated with development of these facilities.

   This expansion plan is a solid move to replace an ever increasing demand for cleaner coal generation that Kansas currently has. This project’s state-of-the-art technologies will enable it to meet federal regulations in place to protect public health and the environment.

   Last year’s Kansas Department of Health & Environment’s decision to deny the air permit not only denies our state the expansion of much needed electricity generation and increased revenues, it sets a terrible precedent for economic development in Kansas. 

   “We believe KDHE exceeded its authority and our members are concerned about what arbitrary decisions could be next that very well could impact agriculture,” said Steve Baccus, Kansas Farm Bureau president and an Ottawa County farmer. ”Our state legislature attempted to address this in the last session by passing bills to reverse the decision.”

   Farmer and rancher members of Farm Bureau continue to support regulatory certainty in Kansas, and therefore support efforts to ensure a clean, abundant and affordable energy supply, including coal.

   Rural regions of our state are already paying higher energy costs than customers in urban areas. This is due in part to the higher costs to serve areas of sparse population.

   “We will continue to seek clarification on this issue and will further develop recommendations for energy policy that is environmentally responsible and promotes a viable economic solution to Kansas energy needs,” Baccus promised.

   More than two dozen separate pieces of legislation have been introduced on the issue, which will likely be at the forefront throughout the entire session.