Kansas Power Pool, a Wichita-based cooperative of mostly municipal electric utilities, announced Friday that it has bought a 7 percent stake, 40 megawatts of capacity, in the Dogwood Energy Facility, a natural gas power plant in Pleasant Hill, Mo.
KPP bought the stake to have access to reliable, lower-cost generation, and have a chance to co-own the facility with other municipal utilities with similar operational needs.
“An ownership stake in the Dogwood Energy Facility ensures a reliable, affordable and long-term power supply for the 21 participating member communities,” Colin Whitley, General Manager of Kansas Power Pool said in a statement. “Such an opportunity would not be available to most municipal electric utilities, but because KPP represents the combined strength of these 21 municipal electric utilities, we have a competitive advantage in the marketplace."
The KPP member cities secured the bond debt with a 20-year commitment to purchase wholesale energy from KPP.
In the last month, municipal utilities, including the KPP, have secured a 27.5% ownership stake in the facility. The facility meets or exceeds all Environmental Protection Agency rules and regulations for electric generating units. The facility began operations in 2002 and has a capacity of 650 megawatts.