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Utility-owned wind generation investment risk exposure

Nick Puga and Collin Cain each submitted direct testimony on behalf of the Kansas Corporation Commission (KCC) Staff in a KCC proceeding regarding Empire District Electric Company’s proposal to acquire 800 megawatts of wind generation. Mr. Cain testified that the wind generation was not needed to meet a need for energy, capacity, or renewable attributes and that projections by the utility greatly inflated the estimated value of the generation, which amounts to an involuntary investment in a risky venture imposed on rate payers. Mr. Puga testified that Empire’s analyses underestimated the risk of underperformance by the wind projects and that risk allocation between Empire’s shareholders and the rate payers is asymmetric in favor of the shareholders. 

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