Westar Energy, Inc. has reached tentative agreements with developers who will build three wind farms in Kansas totaling approximately 300 MW. All are expected to be producing energy by the end of next year. The agreements represent more than a half-billion dollar commitment to wind power in the state and will make Westar's wind energy program the largest in Kansas. In addition, Westar has indicated it will seek an additional 200 MW to be available by year end 2010. Westar also filed with the Kansas Corporation Commission (KCC) a request for predetermination of the ratemaking principles associated with these investments. The agreements with the developers are contingent on receiving satisfactory regulatory pre-approval. The company has asked the KCC to issue its order by Dec. 31, 2007. If approved, the approximately 300 MW of wind generation is expected to begin operation in late 2008.

"In January, Governor Sebelius called on the utilities of Kansas to invest in clean, renewable energy as a way of making the state more energy independent," Bill Moore, Westar Energy president and chief executive officer, said. "Westar Energy is committed to providing customers with reliable electric energy at a reasonable price and to do so while continuing to be good stewards of the environment. Our proposed wind energy plan recognizes these important commitments."

Westar's filing with the KCC indicates that these wind resources, coupled with Westar's existing generating portfolio, allow it to defer the need to build another coal plant. "At some point in the future we will again need to build a base load plant. But if we can defer that decision as long as possible, we believe that will benefit our customers and our state," Moore said.

Westar Energy said in its filing that the addition of wind resources may lower long-term costs of energy, but that in the short run, an average residential customer would see an increase of about $2 to $2.50 per month. "Increases in that range will allow Westar to retain some of the most reasonable rates in our region while protecting against future fossil fuel cost increases. Based on the ability to defer a base load plant and given the potential effect of future fossil fuel price increases and climate change legislation, the wind proposals are a good option for Westar and our customers," Moore added.

While all Westar customers will benefit from the wind energy, the output of the three wind farms is about the equivalent of the electricity consumed by 88,000 homes.

Under the agreements, Westar Energy would own about half of the wind generators at a cost of about $282 million and purchase energy under supply contracts for the other half.

The wind farms are at three sites in Kansas

• Central Plains Wind Farm will be a 99 MW project in Wichita County  between Leoti and Scott City. The developer for the project is RES  America Developments, Inc. Westar will own the generation at this  location, which is expected to begin producing electricity in late  2008. 
• Westar Energy will purchase under contract 96 MW from the Meridian Way  Wind Farm in Cloud County. Horizon Wind Energy, a company owned by  Energias de Portugal, developed, owns and will operate the 201 MW wind  farm. The 96 MW that Westar Energy will purchase is scheduled to be  available in late 2008. 
• The Flat Ridge Wind Farm is a proposed 100 MW wind-powered electric  generating project to be located in Barber County, Kansas. BP  Alternative Energy North America Inc. is developing the project through  its subsidiary, Flat Ridge Wind Energy, LLC. Construction of the  project is expected to start in 2008. At completion, Westar will own  50 MW of power generation and will purchase the remaining 50 MW under a  power purchase agreement.

In February, Westar Energy issued a request for proposals to develop 500 MW of renewable energy by 2010. Westar narrowed 23 competitive proposals from 17 developers based on factors such as cost, environmental considerations, developer experience and community acceptance.