Pool Benefits

Generation Capital Assets

Facilitated by a member-driven governance structure, KPP, and other such Pools across the country, have taken pride in the distinction of owning capital assets benefitting all members.  With the realization of a generation resource useful life extending far beyond the term for debt repayment, members have off balance sheet equity in resources that give the future promise of lower cost with the accumulation of that equity.  A principal example for KPP is our ownership of just over 10% (62 megawatts) of the highly efficient combined-cycle natural gas generation found in the Dogwood Energy Facility located near Pleasant Hill, MO.  This acquisition was carried out by KPP in behalf of all members committing to a long-term power purchase contract.  Each individual member owns a proportional share of the plant, not reflected on the city’s balance sheet, but specifically tied to its membership in the Pool.  All administration associated with bringing the resource to the market is handled by the KPP Staff.

Transmission Assets

Drawing again on its member-driven governance and decision-making structure, KPP has proven itself uniquely poised to achieve benefits in the transmission of power.  Historically speaking, such promised benefits are entirely new to industry participation by municipal electric utilities.  The emergence and growth of regional transmission organizations, the implementation of more than 100 reliability standards of the North American Electric Reliability Corporation, and the issuance of Federal Energy Regulatory Commission Orders 890 and 1000 over the past several years have changed everything for public power entities.  KPP is now squarely focused on participating in regionally funded transmission projects that will help KPP’s members earn revenue to help offset transmission rate increases and lower energy costs and increase reliability for customers.  In June 2016, KPP signed an agreement with GridLiance demonstrating their commitment to work together in advancing transmission projects that would benefit KPP’s members and the SPP region.

Other Value-Added Services

Numerous KPP members have access to other services provided by Staff calculated to assist the utility in remaining competitive, viable and efficient.  Such services are briefly described here:

  • Identifying a utility’s financial trend indicators
  • Crafting a utility fund balance forecast and planning model
  • Assessing the strength and weaknesses of a utility’s distribution system
  • Providing energy efficiency appliance rebates
  • Providing economic development grants
  • Providing paid membership to industry associations