Report: Coal plants cost Kansans more than necessary

KANSAS CITY, Mo. (AP) — The way Westar Energy runs its coal plants in Kansas unnecessarily costs consumers millions of dollars a year through an obscure, if common, practice known as self-committing generation, according to an analysis by a group that advocates for reduced reliance on coal.

The company essentially runs its coal plants year-round, even during the winter months when it's not cost-effective, according to the Union of Concerned Scientists. The group said the practice has been costing Westar customers $20 million a year in added fuel costs.

Market operators including the Southwest Power Pool (SPP) — Westar buys and sells wholesale electricity through the organization — worry that the practice hurts the market.

Regulators in Missouri, where Westar's parent company Evergy is headquartered, have opened up an investigation to see if it's unfairly costing consumers.

Westar says the situation is more complicated than the UCS would indicate. The company has to factor in problems caused by letting plants go idle during cold weather. A spokeswoman says the company has taken steps to make the plants more flexible that saved customers $5 million in fuel costs in 2017.

The Southwest Power Pool coordinates electricity generation in Kansas and 13 other states, mostly in the Central Plains. It helps make sure there's enough electricity to meet the needs of users across the service region at the best price.

The SPP forecasts daily demand. Power generators bid to sell into that market based on how much they project it will cost to operate that day.

The SPP dispatches power plants from the least expensive source on up, until the day's needs are met. The most expensive unit that gets selected in the auction essentially becomes the market price.

The market price is the...