Frequently Asked Questions
Our Supplemental Generation contract with Midwest Energy runs from June 15th through September 15th each year. We are exposed to market pricing during the hours of 10 am to 10 pm Monday through Saturday (Sundays and federal holidays are off-peak pricing.) Our supplier calls each day to quote prices for power for the following day. We make an economic decision each day to purchase power or produce it ourselves during each quoted 12-hour period. If the price of purchased power is lower than our costs to produce it, we will, of course, purchase the outside power. If the price of purchased power is higher than our costs to produce, we will definitely run our units to offset the high prices.
Helping us locate and bring in outside power at lower daily rates than those quoted by MWE, if available, is consultant Greg Wright, co-owner, along with Scott Shreve, of Energy Management Group (EMG) in Topeka, KS. As our energy partner, EMG is under contract with the city to perform these seasonal, daily cost-saving functions, and to help negotiate short and long-term energy contracts for our utility. EMG has saved the city thousands of dollars on replacement power purchases, making daily early-morning deals with outside suppliers such as Kansas City Power and Light, the Kansas Power Pool, Kansas Municipal Energy Agency, Omaha Public Power District, and others.
Supplemental Generation prices can change hourly each day, based largely on regional ambient temperature, unit availability in the region, and even energy prices in adjacent regions of the country. Natural gas prices also play a part in the regional pricing, as gas is used in many peaking plants to produce those last bits of energy needed to satisfy the regional peak demand on a hot day. If you drive by our plant on a hot day and it’s not running, you can rest assured we are purchasing power for a reasonable price.