Kansas Utility to Close 900 MW of Coal Capacity

Kansas City Power & Light Co. plans to retire six generating units at the company’s Montrose, Lake Road, and Sibley Stations. Together, the units account for 900 megawatts (MW) of coal-fired generating capacity.

“When these power plants started operation more than 50 years ago, coal was the primary means of producing energy. Today, as part of our diverse portfolio, we have cleaner ways to generate the energy our customers need,” says Terry Bassham, President and CEO of Great Plains Energy and KCP&L.

The affected units include:

• Lake Road 4/6, 97 MW, entered service in 1967
• Montrose 2, 164 MW, entered service in 1960
• Montrose 3, 176 MW, entered service in 1964
• Sibley 1, 48 MW, entered service in 1960
• Sibley 2, 51 MW, entered service in 1962
• Sibley 3, 364 MW, entered service in 1969

In 2015, KCP&L announced the company was considering retiring the coal units or converting them to an alternative fuel source. One coal-fired unit at the Lake Road Station was converted to natural gas in 2016.

The utility says number of factors contributed to the decision to retire the units, including:

• Reduction in wholesale electricity market prices. The value of energy produced by these plants has dropped in recent years, primarily driven by new wind generation and lower natural gas prices.
• Near-term capacity needs. KCP&L does not anticipate needing new capacity for many years with expected relatively flat long-term peak load growth. In addition, the amount of reserve generating capacity the company is required to carry has been reduced.
• Plant age. The impacted units are older, with all beginning service between 1960-1969. Making costly investments in the units does not make financial sense when compared to other generation sources.
• Expected environmental compliance costs. It is not economic to retrofit these plants with the controls necessary to meet expected environmental requirements.

Wind energy sources have become a much more economic generation resource for the region, the company says. According to the Southwest Power Pool, of which KCP&L is a member, energy generation from wind increased 30% year-over-year in 2016.

KCP&L announced plans in 2016 to buy an additional 500 MW of power from two new wind facilities at Osborn and Rock Creek. In 2017, the company is set to increase its renewable portfolio to more than 1,450 MW, or greater than 20% of its total generating capacity needs.

The utility says it intends to retire all the Montrose and Sibley coal units by Dec. 31, 2018. The Lake Road natural gas unit will be retired by Dec. 31, 2019. Lake Road’s steam operations are not impacted by the announcement.