Westar approved by FERC to buy share of Ironwood wind substation

FERC on Jan. 3 approved a Nov. 18, 2016, application from Westar Energy to allow Westar to acquire from Ironwood Windpower LLC a 50% undivided ownership interest in certain substation facilities.

Together with its subsidiary Kansas Gas and Electric, Westar has nearly 6,000 MWs of electric generation capacity, operates and coordinates approximately 35,000 miles of electric distribution and transmission lines, and provides retail and wholesale electric service to approximately 684,000 customers. Westar is also a transmission-owning member of the Southwest Power Pool (SPP).

Ironwood, owns and operates a 167.9-MW wind facility located in Ford County, Kansas. The Ironwood Facility is interconnected to a 345-kV transmission system located within the Sunflower Electric Power Corp., balancing authority area. Output from the Ironwood Facility is sold to Westar under a long-term power purchase agreement.

Ironwood is indirectly owned 50% by Duke Energy (NYSE:DUK) and 50% by Sumitomo Corp. This now-approved transaction involves a bill of sale entered into between Westar and Ironwood. Under the bill of sale, Westar will purchase from Ironwood a 50% undivided ownership interest in certain Shared Substation Facilities, consisting of: approximately 200 feet of 3-phase, 345 kV high bus; one 3-phase horizontal throw 345 kV F-type motor operated disconnect switch; 150 feet of 3-phase overhead conductor; structural steel; and supports and insulators.

Westar will be entitled to use its pro rata share of the Shared Substation Facilities to deliver power from the Western Plains Facility, which is a wind generation facility that Westar owns, to the SPP transmission system. Westar states that the total purchase of the 50% interest in the Shared Substation Facilities is at a fixed price of $134,594.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.