Executive Report

At Sunflower, we share with our Members, their customers, and the people across our nation, the challenges inherent in these difficult economic times. It’s true that difficult times test our spirit, our mettle, our innovation. It’s also true that success in times of difficulty can be relished even more. No matter how difficult the times may be, our decisions are always made by adhering to the cooperative principles that have been at the heart of our Board’s decision-making process for more than 50 years, which makes us even more proud of Sunflower’s continued growth.

Several of Sunflower’s notable accomplishments in 2009 were related to the Holcomb Expansion Project. In January Sunflower and the Central and Western Kansas Building and Construction Trades Council signed a memorandum of understanding that gives priority to union contractors and Kansas craft personnel during construction of the Holcomb Expansion Project. In doing so, we will not only be providing affordable, reliable power to our Members, but we have also ensured that Kansas workers will have job opportunities that are desperately needed across our state.

On May 4 a compromise was announced between Sunflower and Governor Mark Parkinson that allows us to move forward in our efforts to build the Holcomb Expansion Project. The milestone agreement resulted in a two-part plan that made nationwide headlines.

The first consisted of legislation that advances renewable energy across the state and re-established regulatory certainty. The second part of the settlement consisted of an agreement between Sunflower and the state of Kansas that allows us to move forward in the permitting process to construct one 895-MW coal-fired unit (H2). Additional provisions require Sunflower to generate 20 percent of its power from renewable sources by 2016, cause the construction of two transmission lines from H2 to the Colorado border large enough to carry wind power to the western grid, and assist in the advancement of Kansas wind resources equal to 20 percent of the production capability of H2. The settlement also ensures that 200 MW will be reserved for Kansas. This positive outcome to the legislative session was unexpected but was achieved by the hard work of many legislators and the leadership of Governor Parkinson. We consider this outcome a win-win situation for Sunflower, our Members, and, most importantly, for the people of Kansas.

Transmission projects also made significant advancements during the course of the year. The Kansas Corporation Commission approved a settlement that allows our partner ITC Great Plains to move forward with its section of the V-Plan, and Sunflower, in conjunction with our Members, made system improvements on substations and transmission totaling more than $17 million. These projects not only underscore our belief in the importance of a strong, reliable transmission system throughout our region but our commitment to providing it.

We remain confident in our future, knowing that Sunflower’s Board of Directors and staff continue to dedicate themselves to seeking and providing our Members with the most affordable, reliable, and environmentally-sound power available. We do it for all the right reasons, the people of central and western Kansas.