Ironwood Windpower LLC filed on Nov. 18 with the Federal Energy Regulatory Commission an Amended and Restated Substation Use Agreement with Westar Energy that allows Westar to interconnect a new wind project to the system through a substation now owned by Ironwood Windpower.
Ironwood is an indirect, 50%-owned subsidiary of Duke Energy (NYSE: DUK), and an indirect, 50%-owned subsidiary of Sumitomo Corp. out of Japan. Ironwood owns and operates a 167.9 MW (nameplate) wind facility located in Ford County, Kansas. The Ironwood Facility interconnects via its substation which steps up power from the Ironwood Facility to transmission voltage and then transmits it through the ITC substation to Sunflower Electric Power Corp.‘s 345 kV transmission system in the Sunflower balancing authority area.
Ironwood is a party to a Power Purchase Agreement with Westar dated as of Dec. 9, 2010. Under the PPA, Ironwood sells 100% of the renewable energy produced by the Ironwood Facility, as well as associated environmental and renewable credits, to Westar. The Ironwood PPA has a term of 20 years from the date of commercial operation, with options for two five-year extensions.
Westar is currently developing a 280.6 MW wind facility (the “Westar Facility”) in Ford County, Kansas. The Westar Facility will interconnect through the existing 345 kV busbar within the bounds of the currently existing Ironwood substation.
Under this just-filed agreement, Ironwood will permit Westar to construct certain facilities and equipment within Ironwood’s existing substation to permit Westar to deliver its output to the ITC substation and ultimately to the transmission system, and Westar to use the “Shared Substation Facilities” to deliver up to 330 MW of power from the Westar Facility through the Ironwood substation.
As of the date of this Nov. 18 filing, Westar has not yet provided written notice of Commercial Operation Date to Ironwood. Since the Westar Facility is not yet commissioned and fully operational, Westar has not yet utilized the Shared Substation Facilities. However, Westar has advised Ironwood that it wishes to energize its facility as soon as possible.