|
FOR
RELEASE: 20 March 2007
Contact: Josh Dorner, Sierra Club, (202) 675-2384
Susan Brown, CCPC, (816) 450-8948
Mike Deggendorf, KCP&L, (media), (816) 556-2104
Todd Kobayashi, KCP&L, (investor), (816) 556-2904
Environmental,
Community Groups Announce
Important Energy Agreement with Major Utility
Sierra Club, Kansas City Power & Light and Concerned Citizens
of Platte County
Put Forward Agreement to Reduce Emissions, Spur Clean Energy Development
(Kansas City, Mo.) — In a groundbreaking agreement that can
serve as a model for environmental groups and utilities working
together, the Sierra Club, Kansas City Power & Light (KCP&L),
and the Concerned Citizens of Platte County (CCPC) have agreed on
a set of initiatives to offset carbon dioxide (CO2) and reduce other
emissions for the Kansas City-based utility. Under the agreement
announced today, KCP&L agrees to pursue offsets for all of the
global warming emissions associated with its new plant through significant
investments in energy efficiency and renewable energy, and cut pollution
from its existing plants in order to improve air quality in the
Greater Kansas City metro area. The agreement proposes other investments
in clean energy, significant decreases in emissions and resolves
four appeals pending between the Sierra Club, CCPC, and KCP&L.
Full implementation of the terms of the agreement will necessitate
approval from the appropriate authorities, as some of the initiatives
in this agreement require either enabling legislative policy or
regulatory approval.
“We believe
there is significant potential through new energy technology and
innovative approaches to improve the environment and offer additional
value to our customers across the Kansas City region. This is especially
true with energy efficiency and wind generation, which we have been
implementing already through our Comprehensive Energy Plan developed
in 2005” said Mike Chesser, Chairman and CEO of Great Plains
Energy. “We look forward to collaborating with the Sierra
Club and other stakeholders as we pursue these exciting new opportunities.”
“This agreement is a win for our climate, for the environment,
and for the residents of the Kansas City area,” said Carl
Pope, Sierra Club Executive Director. “It is the latest sign
that smart energy solutions like wind power and energy efficiency
are gathering steam. We look forward to working with KCP&L to
help the Midwest realize its full potential as a leader in the clean
energy technologies that will fuel the economy of tomorrow.”
The most significant
element of the agreement is the unprecedented commitment by KCP&L
to pursue the offset of carbon emissions from its proposed Iatan
2 generating station, located near Weston, Missouri. The estimated
6,000,000 tons of annual carbon dioxide emissions are targeted to
be offset by adding 400 megawatts (MW) of wind power; 300 MW of
energy efficiency; and a yet to be determined combination of wind,
efficiency, or the closing, altering, re-powering or efficiency
improvements at any of its generating units. These proposed offsets
will be partially implemented by 2010 and fully implemented by 2012.
The parties are also agreeing to work together on a series of regulatory
and legislative initiatives to achieve an overall reduction in KCP&L’s
carbon dioxide emissions of 20 percent by 2020.
“This
agreement shows that we can work together to curb air pollution,
combat global warming, and protect our local communities”,
said Susan Brown, chairperson for Concerned Citizens of Platte County.
“The renewable energy investments in this agreement can revitalize
the region’s manufacturing economy and offer rural landowners
a new source of steady income from wind turbines located on their
property. The large investment in energy efficiency will also help
everyone use less energy—reducing emissions and saving consumers
and businesses money each month.”
In addition
to offsetting its global warming emissions, residents of the Kansas
City area will benefit from reduced emissions of criteria pollutants
at KCP&L’s existing Iatan 1 and La Cygne plants. The agreement
calls for annual reductions in nitrogen oxides, sulfur dioxide and
particulate matter estimated to total some 9,100 tons. Within the
next year, KCP&L will also work with the Sierra Club to study
options, including retiring, re-powering or upgrading its Montrose
power plant. Finally, KCP&L will fund several community projects
including: recommendations of the Kansas City Climate Protection
Committee targeting global warming reduction measures; additional
monitoring of soot and smog pollution in the metro area; and an
upgrade to the drinking water infrastructure in Weston, a community
near the Iatan station.
In another important
step for clean energy, KCP&L will also file for approval of
a net metering program within six months. Net metering allows a
utility’s customers to generate small amounts of renewable
energy on-site, such as from rooftop solar panels or a small wind
turbine, and sell any excess energy back to the utility.
KCP&L’s
Comprehensive Energy Plan was collaboratively constructed with a
broad group of stakeholders and includes investments in new generation
(including renewable wind energy); innovative efficiency, affordability
and demand response programs; infrastructure improvements; and proactive
environmental investments. This balanced approach will enable KCP&L
to satisfy growing energy demands across the region for years to
come while improving environmental stewardship.
“KCP&L’s
current Comprehensive Energy Plan addresses the energy needs and
emissions reductions for the Kansas City region with actions into
the year 2010. This Agreement is the start of the next set of discussions
with stakeholders as we develop our plans for the 2010-2015 timeframe,”
said Bill Downey, President and CEO of KCP&L. “It reflects
the ongoing atmosphere of collaboration we established in developing
the CEP, and proactively resolves differences. We look forward to
working with all stakeholders to secure a long-term energy supply
for Kansas City while improving air quality.”
This agreement
builds on the success of a 2006 agreement that Sierra Club brokered
with City Water Light and Power of Springfield, IL. That agreement
stipulated that the municipal utility retire one of the dirtiest
coal plants in the nation, purchase 120 MW of wind, invest four
million dollars in energy efficiency, and significantly decrease
emissions of soot, smog and mercury pollution. In addition, all
of the government buildings owned by the state of Illinois are to
be powered with green electricity. Last week, CWLP announced that
it stands to at least break even and may reap significant profits
from its purchase and resale the wind power investments required
in their agreement.
“We were and continue to be very pleased with the agreement
we reached in Springfield,” commented Pope. “Our exciting
new agreement with KCP&L raises the bar even further and demonstrates
just how much we can achieve when utilities and groups like the
Sierra Club work together.”
###
About
the Sierra Club
Sierra Club, founded in 1892, is the nation’s oldest and largest
grassroots environmental organization with over 1.3 million members
and supporters. For the past two years the Great Rivers Environmental
Law Center has represented Sierra Club and CCPC in their appeal
of the Missouri PSC approval of the Iatan 2 power plant. For the
past year Washington University Interdisciplinary Law Clinic has
represented Sierra Club in its appeal of the air permit Missouri
DNR issued for Iatan 2.
About
the Concerned Citizens of Platte County
Concerned Citizens of Platte County, Inc. (CCPC) is a group concerned
about quality of life, children's health and property values in
Platte County, Missouri and the surrounding region. The organization
was incorporated in the early 1990's.
About
Kansas City Power & Light
Headquartered in Kansas City, Mo., KCP&L (www.kcpl.com) is a
leading regulated provider of electricity in the Midwest. KCP&L
is a wholly owned subsidiary of Great Plains Energy Incorporated
(NYSE: GXP), the holding company for KCP&L and Strategic Energy
L.L.C., a competitive electricity supplier.
Information
Concerning Forward-Looking Statements
Statements made in this release that are not based on historical
facts are forward-looking, may involve risks and uncertainties,
and are intended to be as of the date when made. Forward-looking
statements include, but are not limited to, statements regarding
projected delivered volumes and margins, the outcome of regulatory
proceedings, cost estimates of the comprehensive energy plan and
other matters affecting future operations. In connection with the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, Great Plains Energy is providing a number of important
factors that could cause actual results to differ materially from
the provided forward-looking information. These important factors
include: future economic conditions in the regional, national and
international markets, including but not limited to regional and
national wholesale electricity markets; market perception of the
energy industry and Great Plains Energy; changes in business strategy,
operations or development plans; effects of current or proposed
state and federal legislative and regulatory actions or developments,
including, but not limited to, deregulation, re-regulation and restructuring
of the electric utility industry; decisions of regulators regarding
rates its subsidiaries can charge for electricity; adverse changes
in applicable laws, regulations, rules, principles or practices
governing tax, accounting and environmental matters including, but
not limited to, air and water quality; financial market conditions
and performance including, but not limited to, changes in interest
rates and in availability and cost of capital and the effects on
pension plan assets and costs; credit ratings; inflation rates;
effectiveness of risk management policies and procedures and the
ability of counterparties to satisfy their contractual commitments;
impact of terrorist acts; increased competition including, but not
limited to, retail choice in the electric utility industry and the
entry of new competitors; ability to carry out marketing and sales
plans; weather conditions including weather-related damage; cost,
availability, quality and deliverability of fuel; ability to achieve
generation planning goals and the occurrence and duration of unplanned
generation outages; delays in the anticipated in-service dates and
cost increases of additional generating capacity; nuclear operations;
ability to enter new markets successfully and capitalize on growth
opportunities in non-regulated businesses and the effects of competition;
application of critical accounting policies, including, but not
limited to, those related to derivatives and pension liabilities;
workforce risks including compensation and benefits costs; performance
of projects undertaken by non-regulated businesses and the success
of efforts to invest in and develop new opportunities; the ability
to successfully complete merger, acquisitions or divestiture plans
(including the acquisition of Aquila, Inc., and the sale of assets
to Black Hills Corporation); and other risks and uncertainties.
Other risk factors are detailed from time to time in Great Plains
Energy’s most recent quarterly report on Form 10-Q or annual
report on Form 10-K filed with the Securities and Exchange Commission.
This list of factors is not all-inclusive because it is not possible
to predict all factors.
|
