Governor, Sunflower Electric Agree on Plan

Governor Mark Parkinson Press Release – May 4, 2009

Governor Parkinson And Sunflower Electric Agree To New Energy Plan Kansas To Take A Significant Step Forward On Renewable Energy Policy

Governor Mark Parkinson, together with Sunflower Electric Power Corporation President and CEO, Earl Watkins, have announced a comprehensive energy plan to encourage the production of more renewable energy in Kansas.

“We’re bringing people together to create hundreds of jobs, increase our renewable energy production and ensure a comprehensive energy plan for our state,” said Governor Parkinson. “Prior to this agreement, the Legislature was at an impasse on energy issues. With this agreement, we can start to move forward.”

The current agreement will allow Sunflower to construct one 895 megawatt coal plant with an unprecedented level of carbon mitigation. This project is estimated to create more than 1,500 jobs at the peak of its construction.

The agreement between the Governor’s Administration and Sunflower Electric is contingent upon the Legislature’s passage of the Comprehensive Energy Package proposed by Parkinson and then-Governor Kathleen Sebelius in January.

“We are pleased to work with Governor Parkinson as this proposal meets the base load needs of the region and will promote the development of renewable resources in Kansas. The proposal will allow our out-of-state cooperative partners to participate in the project in a smaller way while preserving the 200 MW needed by Kansas cooperative and municipal utilities. Agreement provisions for wind, biomass and transmission development will promote renewable energy development in western Kansas,” said Earl Watkins, president and chief executive officer for Sunflower.

“I want to acknowledge every legislator, stakeholder and environmental advocate who have worked for the past 18 months on comprehensive energy policy for this state,” Parkinson continued. “I may not have a full term as Governor, but I do have a full agenda. We will be bringing people together – Republicans and Democrats; labor and business; public and private stakeholders – to move this state forward.”

“We appreciate the leadership shown by the Governor to recognize the need for base load power in the Sunflower system. This effort will move the project forward bringing much needed economic activity and jobs to Kansas,” said Watkins.

“This agreement meets the goals of our project, but will also address concerns of our coalition partners that the regulatory process is clear and follows the federal clean air act. The legislative proposal will move Kansas toward a comprehensive energy policy that utilizes all forms of generation, encourages the wise use of energy and balances concerns for cost and the environment.”