The City of Marion joined Kansas Power Pool Monday to provide additional advantage to the city while negotiating a new contract with Westar Energy and to provide a possible second source of electricity.

Colin Whitley, general manager of KPP, told the council that the association became operational in May 2005, and currently has 41 members. Of those members, it provides electrical services to 28 cities located in two control areas and transmission systems owned by three entities.

“Instead of every city doing its own thing, let’s find a better solution,” Whitley said. He continued that there are cities that have capacities that are twice their loads so they can share as a pool.

The organization began when a group of cities was notified by Westar Energy that their long-term contracts were going to be canceled. This required those cities to make costly and intensive application to Southwest Power Pool for transmission service.

“There were no other options at the time,” Whitley said.

As a member of Kansas Power Pool, there are valuable benefits to the community, he said — equal representation by all participants regardless of population, pooling of resources, access to lower cost market energy, and reserve sharing.

City administrator David Mayfield asked Whitley who would pay for a distribution line for Marion. Whitley answered KPP members would share the costs just like Marion would as a member for other cities’ distribution lines.

The city would be required to provide a “real time” electrical meter at a cost of $10,000-$12,000. Regardless if the city joined the KPP, at some point Westar Energy would probably require the meter.

Currently the KPP wholesale rate is $9.50 per kilowatt for demand charge. The energy charge is three cents per kilowatt-hour with an overall average of a little more than five cents per kilowatt-hour.

Whitley said the organization is not-for-profit and can offer other services including mutual aid, new load/new system improvements, and distribution facility charges. Cities can save money by not having to hire contractors and other professionals to provide the services KPP provides.

The city will pay a $1,000 one-time membership fee. If KPP cannot obtain transmission service for the city, the city can walk away. Otherwise, the city will sign a two-year contract, which would eliminate a contract with Westar Energy. KPP obtains its electrical service from Westar Energy and Sunflower Energy but is in a better position to barter for the best pricing.

KPP also will provide an analysis to the city of estimated costs for transmission lines. The city’s contract with Westar Energy ends July 2010 but the city needs to be in position to negotiate long before the contract ends.

The cost for the city to join is $200 per megawatt based on the latest reading, which will cost the city approximately $1,200.

The council will review a resolution at its next meeting for membership.