Environmental, community groups announce energy agreement with KCP&L

Kansas City, MO, Mar. 20, 2007 — 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 terms of the agreement, 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, 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,” said Mike Chesser, chairman and CEO of Great Plains Energy.

“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.

The most significant element of the agreement is the 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. The 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, KCP&L will reduce emissions of criteria pollutants at their 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.

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 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.

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