Archive for Thursday, June 14, 2001

Other electrical options are listed

June 14, 2001

Briefly, the other seven options presented by Utility Director Terry McKinney at last Wednesday's town hall meeting were:

Option one is to continue the present mode of operation by utilizing both BPU and GRDA energy.

In order to do that, Baldwin must maintain a 12-percent reserve in capacity over peak demand.

With projected growth, McKinney said the city will most likely run out of reserves in 2002.

Option two is to continue with option one mode of operation but add more generation to meet present and future energy needs.

Baldwin would be self-supporting, but would have to purchase and install 15,000 kw of additional generation at an estimated cost of $10 million. Unlike the preferred option eight, Baldwin would have to bear the entire $10 million cost with no partner.

McKinney said a lot of utilities have added generation due to deregulation and the concern for shortages over the next five to 10 years. This could leave Baldwin vulnerable with inadequate, unaffordable energy, he said.

Even though the power plant would provide enough power to all of the residents, the electrical rates would be raised.

Option three would have Baldwin work out a total requirements agreement with Kansas City Power and Light.

In this option, Baldwin would continue to own the electric utility, the city must decommission and disassemble the power plant at what would be a high cost.

Baldwin would receive all of its energy from KCPL at an estimated 10.33 cents per kilowatt-hour. If the power were to go off, it would be off until KCPL restored it.

Baldwin would also have to sell or get another municipality to take over capacity the city has purchased from BPU and GRDA.

McKinney said at first KCPL wasn't interested in the agreement, but has possibly changed its position in the last few weeks. The city's not sure where KCPL stands right now.

In option four, Baldwin would work out a total requirements agreement with Western Resources.

Western Resources has indicated it isn't interested in a total requirements agreement because it's not in its or Baldwin's best interests.

Option five is to sell the power plant and electrical distribution system to KCPL.

KCPL has shown a little interest in the electrical distribution system, but is not interested in purchasing the power plant.

Baldwin would still have the power plant and distribution system debt.

If the electric utility is sold, the ball field lights, street lights, franchise fees and administration costs would have to go in the general budget causing the mill levy on property taxes to increase.

Option six is to sell the power plant and electrical distribution system to Western Resources.

Western Resources has indicated it is not interested in the purchase.

Option seven is to partner with KCPL on additional generation in or around Baldwin.

KCPL has indicated it is not interested in partnering with the city because it feels Baldwin does not have the resources available for the size unit it would want.

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