Electric companies lining up

for right to build lines

9/3/2008

By MIKE CORN

mcorn@dailynews.net

Hays-based Sunflower Electric has entered into an agreement that ultimately could result in the construction of a huge transmission line reaching into Wichita.

The construction process itself, however, won't be that simple.

Already, Westar Electric, the state's largest utility, has offered to build the same line. As a result, the Kansas Corporation Commission will decide who is going to build the line.

Sunflower and Mid-Kansas Electric -- the cooperative that purchased Aquila's electric operations in the central part of Kansas -- on Tuesday announced they have reached an agreement with ITC Great Plains for the construction process.

Mid-Kansas is owned by the same electric cooperatives that own Sunflower.

ITC Great Plains already has offered to build a line from Spearville through Hays and on into Nebraska.

Under the agreement announced Tuesday, ITC Great Plains would build a line from Spearville to Comanche County and then from there to Medicine Lodge. The line would carry 765,000 volts of power, if regulators consider that reasonable.

As part of its agreement with ITC, Sunflower and Mid-Kansas are offering Westar the opportunity to build the last leg of the line from Medicine Lodge into Sedgwick County.

If they don't want to build the last leg, ITC Great Plains has offered to build that as well.

Westar, however, has proposed building the entire line. A spokesperson for Westar could not be immediately reached for comment on Sunflower's offer.

At stake is something of a turf battle for both utilities.

Sunflower and Mid-Kansas argue they have the right to build the line in the area they serve. Westar serves most of the area Sunflower is offering to let them build.

ITC Great Plains would do the actual construction, with Sunflower and Mid-Kansas operating and maintaining the line. ITC would charge for electricity that flows along the line.

Sunflower spokesman Steve Miller said the line is unrelated to the proposed construction of two new units at the Holcomb power plant outside of Garden City.

That process has been stalled since the request for an air permit for the plants was denied by the Kansas Department of Health and Environment. Despite legislative efforts to overturn the decision, the case now is pending before the Kansas Supreme Court.

If the Holcomb plants are built, lines running into Colorado, Oklahoma and Texas could be needed because utilities in those states have agreed to build the plants, which would then be operated by Sunflower.

Because Westar has proposed building the line, the decision on who ultimately will construct it will fall to both the Southwest Power Pool and the KCC.

SPP will have to determine if the project is financially feasible and if utility companies served by the line can contribute to the cost.

The KCC will have to determine who has the right to build the line, given it crosses areas covered by at least two utilities. The battle already has generated considerable paperwork for the state agency.