News Release

December 18, 2008

KCC Urges Companies to Work Together in Major Transmission Line Project

The Kansas Corporation Commission (KCC) today issued an order setting procedures to determine which of the competing entities will build a high voltage transmission project proposed for Kansas. Two companies have applied to construct the lines, ITC Great Plains and Prairie Wind. The Commission urges the parties to work together to develop the project but adopted a procedural schedule that, if needed, will set a process to decide which company constructs the lines. The project could go to one company or it could be split between the two.

The Order addresses pending procedural questions regarding competing proposals to build a 765 kV (kilovolt) transmission line to connect Spearville and Wichita substations and to interconnect with a transmission line north out of Oklahoma. ITC Great Plains' proposal is a V-shaped route that is estimated to be 180 miles in length; Prairie Wind's proposal is a Y-shaped route in the same region that is estimated to be 230 miles in length.

Tom Wright, chair of the KCC, said that proceedings at the Southwest Power Pool and the Federal Energy Regulatory Commission must be complete before construction can start. For the Commission's part of the process, Wright said that if no agreement is reached, due process requirements entailed in a contested proceeding result in a schedule that would be concluded by the end of 2009.

Construction of such a high-voltage, 765 kV transmission line has an estimated cost of just under $400 million to just over $600 million. If built, this transmission project will be a part of a network of Extra High Voltage (EHV) transmission lines commonly referred to as the EHV overlay that is being considered as part of the future transmission grid of the Southwest Power Pool (SPP). The SPP is a Regional Transmission Organization for this area as designated by the Federal Energy Regulatory Commission (FERC). If approved by the Commission and the SPP, the cost of this line will be recovered through a regional funding mechanism, which is being developed by the SPP.

"Both the Kansas Legislature and the Commission have endorsed regional transmission planning and development," the order states. "The hallmark of the SPP process has been collaboration and compromise, which has enabled its projects to move forward with a minimum of litigation.

Wright said, "It would be very unfortunate if this project, a critical part of a regional system of EHV construction, and most likely the first to be built in the country, was to be delayed for failure to resolve issues through compromise and collaboration."

Wright said that the Commission's primary duty in addressing the proposal to construct a 765 kV transmission line, whether it is constructed by one or both of the applicants, is determining what is in the best interest of the public.

The Commission acknowledged that the Kansas Electric Transmission Authority (KETA) has also encouraged the parties in this proceeding to consider working together to complete this EHV transmission line citing in a December 1 letter from KETA Chairman Carl Holmes urging the parties to resolve their competing proposals: "outside the confines of a hearing room."

The Commission states in the order that "Both parties have made unilateral offers of settlement that have been widely reported in the media and are reflected in the record of these proceedings. To encourage discussion among the parties, the Commission's procedural schedule includes time for parties to attempt settlement of these proceedings through compromise and agreement."

Please see the KCC web site, http://kcc.ks.gov for a complete copy of the order.

Docket No. 08-ITCE-936-COC, 08-PWTE-1022-COC

Media Statement

Media note: Attached is a statement by KCC Chairman Tom Wright from a media briefing held at 2:00 p.m., today at the Kansas Corporation Commission office.

Media Statement
Kansas Corporation Commission Chairman Thomas Wright
high voltage transmission line project
December 18, 2008

Good afternoon. Thank you for being here.

This is such an important case –the first in the country where we've got two different companies competing for the opportunity to construct high voltage transmission lines. The two companies are ITC Great Plains and Prairie Wind.

The Kansas Corporation Commission strongly urges both companies to work together to reach an agreement to construct this transmission project. If the companies fail to reach a compromise that satisfies both parties, the KCC will be forced to make the determination. And if KCC decides the issue for the parties, we may end up with a clear winner and a clear loser in the case. We'd prefer to avoid that outcome for a number of practical reasons.

An agreement could enable both companies to benefit, whereas, a decision for one company over another most likely translates into major delays with court challenges and on-going questions.

We find it in the best interest of Kansans and in the best interest of these companies to work together to find a solution. And we're not alone. The Governor and the Kansas Electric Transmission Authority have also encouraged the parties to work together.

The KCC's primary duty in addressing the two proposals to construct a 765 kV transmission line is to determine what is in the best interest of the public. We've issued an order today that establishes procedures and a timeline that the KCC will follow in considering the two competing proposals. Our hope is that the companies will come to a mutually beneficial agreement but we will be prepared to decide the matter if they don't.

Since this is an on-going case before the KCC, I am unable to take questions, however there is a detailed press release available here today and you can also review the order at http://kcc.ks.gov.