Managing Generation Resources for a Stronger Energy Future
By Steve Epperson, CEO, Sunflower Electric Power Corporation
In the first two articles in our Behind the Cost of Power series, we explored the cooperative partnership between Sunflower Electric Power Corporation and our seven member utilities, and the work required to maintain and expand the transmission system. In Part 3, we're taking a closer look at electric generation and its role in the cost of wholesale electricity. Making the most of proven generation resources today can help avoid unnecessary replacement costs while continuing to provide you with dependable power as electricity needs grow.
Making the Most of Existing Resources
One of the best ways to manage generation costs is to make the most of our current generation facilities, many of which have served electric consumers in central and western Kansas for decades. The average age of Sunflower's coal and natural gas generation fleet is 49 years, with some units approaching 60 years old. As equipment ages, maintenance becomes increasingly important and, in some cases, more complex. But that doesn’t automatically mean an older generation unit is a candidate for replacement. Continuing to maintain an existing unit can be far less expensive than building an entirely new generating resource. That's why Sunflower uses technology, inspections, and detailed maintenance planning to identify problems early, improve performance, and extend the useful life of our generating assets.
For example, Sunflower updated the analog control systems at several older natural gas generation facilities to modern digital systems. Online performance monitoring helps identify early signs of equipment problems or efficiency losses, while a computerized maintenance management system helps staff track repairs, plan preventive maintenance, and identify future replacements.
At Sunflower’s Holcomb Station coal-fired generation plant, a 2006 furnace modification significantly reduced slag buildup on boiler tubes and helped extend the life of the boiler. More recently, sections of the boiler were replaced during planned outages to better align equipment life with the plant’s operating life.
Maintenance planning also means looking for ways to spread costs over time. A great example is Holcomb Station’s fabric filter baghouse used for control of particulate emissions, which has 28 compartments containing hundreds of filter bags requiring periodic replacement. Sunflower staggers the filter bag replacement rather than replacing them all at once, helping levelize costs while keeping the equipment operating as intended.
These decisions may seem like small details, but they add up. Maintaining equipment, identifying problems early, and making strategic upgrades can help extend asset life and delay the need for more costly replacements. When replacement makes sense, Sunflower carefully evaluates the costs, reliability, and needs of our local communities to determine the best path forward. The goal is not simply to add new infrastructure, but to make investments that provide dependable service and long-term value for cooperative members.
Planning for a Changing Electric Grid
While we're making the most of today's generation resources, we’re also adapting to rising electricity demand in Kansas and across the country. The North American Electric Reliability Corporation, which develops and enforces electric reliability standards for the bulk power system, projects peak demand on the U.S. energy grid to increase by 24% by 2035.
Regionally, Southwest Power Pool (SPP), which operates the power market serving Kansas and 16 surrounding states, has a current system peak of 56 gigawatts. A system peak is the highest amount of electricity being used across the SPP region at one time. Under SPP's higher-growth scenario, the regional peak demand could double within 10 years. This potential growth reinforces why long-term planning matters. New generation resources can take years to plan, permit, finance, engineer, and construct.
As not-for-profit cooperatives, Sunflower and our member utilities have a responsibility to make thoughtful decisions on behalf of consumers. That means balancing today's needs with tomorrow's, focusing on the costs we can control and carefully weighing the long-term value of every investment.
Investing With the Long Term in Mind
The electric system we rely on today was built through decades of investment. Maintaining that system and preparing it for tomorrow requires the same long-term thinking. We also recognize rising costs concern families and businesses, and Sunflower takes that responsibility seriously. Some investments are necessary to keep the system reliable and ready for future needs, but every investment should have a clear purpose. Our responsibility is to plan carefully, prioritize wisely, and invest in the resources that provide the greatest long-term value to cooperative members like you.
As this series continues, we'll explore more of the forces shaping wholesale power costs, including regional energy markets, changing electricity demand, supply chain pressures, and the ways Sunflower and our member utilities are working together to maintain a reliable power supply while managing costs responsibly.
Read the Series
Behind the Cost of Power | Part 1: Understanding the Cooperative Difference
Behind the Cost of Power | Part 2: Planning Today’s Transmission Infrastructure for Tomorrow’s Power