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POWER
FACTOR
Bob Poehling Resigns from KMEA
Inside This Issue
In early February, KMEA General Manager, Bob Poehling, tendered his
resignation when NMPP Energy, a utility joint action agency headquartered
in Lincoln, Nebraska, selected Bob as its new executive director and chief
executive officer. Bob succeeds Gary Stauffer, who announced his departure
in November, after more than 11 years with the joint action agency.
BOB POEHLING RESIGNS
PAGE 1 - 2
100 YEARS OF POWER
PAGE 2 - 3
WELCOME ALTAMONT PAGE 4
COFFEYVILLE ADDS
GENERATING CAPACITY
PAGE 4
EARLY CAREER EXCELLENCE PAGE 5
ON THE MOVE
PAGE 6
KMEA’S JOHN SECK
PAGE 7
EQUIPMENT LOAN PROGRAM
PAGE 7
MISSION STATEMENT
KMEA is passionately
committed to the success
of our members fulfilling
their primary mission of
providing reliable and cost
effective energy to their
communities. We pledge
our relentless focus and
dedication to providing new
and innovative solutions to
help our members achieve
this mission.
Vol. 2 No. 1
Spring 2015
Bob brings a wealth of knowledge
and experience with his 25 years
in the power and utility industry,
including the last four as KMEA’s
General Manager. Bob’s broad
experience in both electric
and gas, makes him uniquely
qualified and a great find for
NMMP. Recognizing his skills and
experience, the Joint Operating
Committee of NMPP selected Bob
after an extensive search process,
which included the
assistance of a national utility
management search firm.
NMPP includes four organizations: The Nebraska Municipal Power Pool
(utility services), the Municipal Agency of Nebraska (wholesale power
supply), National Public Gas Agency (wholesale natural gas supply) and the
Public Alliance for Community Energy (retail natural gas supply). Bob is set
to take the helm and lead these organizations into the future starting April 6.
Bob certainly left his mark at KMEA as the agency experienced growth
rivaling any other period of KMEA’s history. Under Bob’s leadership, KMEA
added 12 member cities and increased its electric load by 170 megawatts.
Bob also presided over the Agency during a period of major change within
the industry, including entry into the SPP EIS market as well as the SPP
IM. Both market designs required major changes to the Agency’s core
business skill sets. Additionally, KMEA moved forward with the building
of a billing system, credit scoring, installing generation, and bond issuance,
under Bob’s leadership. Bob leaves KMEA on good footing, building a
staff with significant bench strength, poised for the future, including the
addition of four KMEA Staff in 2014. Bob has always represented the
Agency in a professional manner and elevated our stature in the industry
and the state. “I’m extremely proud of the organization we’ve been able
to put together over the last few years.” (Continued on page 2)
Bob Poehling Continued
KMEA President and Lindsborg City Administrator, Greg DuMars, expressed very well the sentiments of
the KMEA staff who were privileged to work with Bob, stating, “I want to thank Bob for all of his positive
contributions to KMEA and its members. The Agency has grown and advanced under his leadership. While we
hate to see him leave, we wish him the best luck in his new position with NMPP.”
An executive management recruiting firm is assisting KMEA in its nationwide search to find the next general
manager. The candidates will be carefully screened and interviewed by a Selection Committee, comprised of the
KMEA/KMGA Joint Board and two additional KMEA Executive Committee members. The search process is
anticipated to take four to six months in order to afford the recruiting firm and Joint Board the opportunity to
exercise every measure of due diligence in selecting the best candidate to succeed Bob.
100 Years of Public Power
At KMEA’s November 2014 Annual Conference, we were privileged to recognize milestone achievements of
four of our member cities. Cawker City, the City of Garnett, the City of Pomona, and the City of St. Francis all
reached the centennial milestone in 2014, representing 100 years of public power. By year’s end, KMEA officially
recognized each city with the presentation of a centennial plaque. A special thanks to each of these cities, whom
we are proud to feature. We have included a brief historical overview for those cities who provided historical
information. Told in their entirety, each city has a rich and fascinating story that tracks their entry into and
illustrious journey in public power.
CITY OF GARNETT
The City of Garnett began producing electricity in 1914. The first commercial electric generating unit was
a small unit. The steam plant was destroyed by fire on May 22, 1924. The plant was then rebuilt. Internal
combustion diesel engines were purchased to replace the steam generators. The last steam generator to be
replaced by a diesel engine was in 1930. The new engine was a 600 hp, 4 cylinder, 400 kw Fairbanks Morse diesel
engine. This unit is still in use today. It has given 106,000 hours of reliable service to Garnett. It is amazing
when you ponder the fact that there have only been four power plant superintendents in the span of 100 years,
including current superintendent, and recent Max Embree Award recipient, Bob Mills, who has over 30 years of
service at the plant.
City of Garnett Centennial Presentation
City of Garnett Power Plant built in 1914
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100 Years of Public Power Continued
CAWKER CITY
On the evening of June 3, 1908, Cawker City basked in the incandescent glow of electric lights for the first
time. With the flick of a switch, Cawker City was instantly transformed into a modern city. How difficult it is
for us today, 100 years later, to comprehend the excitement of that evening. By the end of 1908, a commercial
club with 65 members was formed to address the further improvement of the town, including the creation of a
power plant. On March 12, 1908, Granville Lee Hudkins submitted plans for creating a mutual electric light and
power company. The plans were enthusiastically endorsed and the necessary $15,000 in capital was raised for
the required equipment. It all started with a fifty horsepower, two cylinder, Fairbanks & Morse gasoline engine,
which weighed 18,500 lbs and a fifty kilowatt Westinghouse dynamo, weighing 3,800 lbs. W. L. Harmon was the
expert electrician employed to wire the town. The system had a capacity for a total of 600 lights. Details of the
above account were recorded and authored by Steven Richardson for Cawker City.
Cawker City Centennial Presentation
Cawker City Power Plant indicated on view from water tower
CITY OF ST. FRANCIS
City of St. Francis Centennial Presentation
In July 1913, the citizens voted for a light plant not to exceed
$10,000. The first engine was a 50 hp International Harvester,
a two cylinder opposed piston with a 50 kilowatt generator.
On Saturday night, February 28, 1914, the lights were turned
on, and St. Francis had electricity for the first time.
CITY OF POMONA
City of Pomona Centennial Presentation
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KMEA Welcomes Altamont to EMP No. 3
Faced with a new contract, which included longer terms and higher costs, the City
of Altamont, approached KMEA last year to discuss the citys’ power supply needs
and wanted to explore other competitive electric options. KMEA’s work with
Altamont through detailed discussions, research and council meetings, resulted
in the City of Altamont expressing a desire to move forward with KMEA as
its electric supplier. With the prospect of realizing some immediate savings
and a shorter term length, the City of Altamont will become the 12th member
city to join KMEA’s Energy Management Project No. 3 (EMP3) as the existing
EMP3 cities readily voted to include Altamont. The city of Altamont, Kansas,
is located in the southeast corner of the state, in Labette County, with an
estimated population of 1,200 and a summer peak load hovering around, 2.5
MWs. We are excited about the City of Altamont joining our EMP3 on April 1,
2015, a real win-win-win, strengthening the position of the City of Altamont,
the EMP No. 3 group, and KMEA. Please join us in congratulating and welcoming
the City of Altamont to EMP3.
Coffeyville Adds Generating Capacity
The City of Coffeyville took a significant step toward solidifying the future of Coffeyville Municipal Light and
Power (CMLP) by the recent signing of a new power purchase and sale agreement with the Grand River Dam
Authority. As a result of the new contract, an agreement was approved with Wärtsilä North America to purchase
and install an additional 56 MWs of generating capacity. Gene Ratzlaff, Electric Utility Director, announced
plans to install three 18.7 MW Wärtsilä 8V50SG generating units at a site located in the Coffeyville Industrial
Park. “The generators are currently being built in Italy and are expected to be in commercial operation by
January, 2017,” said Ratzlaff. “We began planning this new generation project in May, 2012. We are very excited
to make this announcement,” stated Mike Shook, Electric Utility Deputy Director. “The City of Coffeyville
believes this new generation project will allow us to continue to serve our community by providing reliable and
affordable electric service to our residents, businesses, and the surrounding area for many years to come, just as
we have since 1901.”
Gary Groninger, Wärtsilä Business
Development Manager, and
Coffeyville Mayor, Jim Falkner,
sign the agreement to purchase
generators for the new generation
project. The cost of the three generators
is $29,588,515.
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Early Career Excellence
KMEA is pleased to have the opportunity to boast about two member city leaders, who are recipients of the
Kansas Association of City/County Management (KACM) Early Career Excellence Award. Grayson Path,
City Administrator for the City of Jetmore, and Taggart Wall, City Manager for the City of Sterling, were both
recently recognized by KACM. This award was established in 2013 to recognize early career local government
professionals working in Kansas who demonstrate excellence in the profession and strong promise to positively
impact the profession. The award is intended for early career professionals ranging from intern stage through the
first five years of one’s career. Please join us in congratulating Grayson and Taggart on their outstanding work
and well deserved recognition.
Grayson Path
Grayson Path - City Administrator, City of Jetmore
Grayson Path, City Administrator for the City of Jetmore, in
short time, has established an impressive track record. In 2009
Grayson served as an intern for U.S. Senator, Ben Nelson of
Nebraska. Grayson then worked for the Jonesboro Human
Development Center from 2010 - 2013, while also serving
as a circuit preacher in northeast Arkansas. In addition to
the Early Career Excellence Award, Grayson received the
Arkansas City Management Association Scholarship and was
a Local Government Management Fellowship finalist. As city
administrator, he is also a KMEA Finance Committee member,
negotiated the City of Jetmore’s new power supply agreement,
authored the city employee handbook and stabilized the city
budget, among other things. Grayson earned his Masters
of Public Administration from Arkansas State University, a
Bachelor of Science in Mathematics from the University of
Nebraska and an associate of Science -Physics from Northeast
Community College.
Taggart Wall
Taggart Wall - City Manager, City of Sterling
Taggart Wall, City Manager for the City of Sterling, has quickly
accumulated an impressive body of work. Beginning his
government career in 2009 as a municipal elected official, he
won a four-year term on the Winfield city commission. Taggart
was a management intern and later a management assistant in
Arkansas City from 2012 - 2014. Two years after serving on the
Winfield city commission, Taggart became the youngest mayor
in the history of the city. Taggart has served on various task
forces for different issues in local government, including the
“ICMA Breaking into Local Government” taskforce. Taggart
earned his Master of Public Administration in 2013 from
Wichita State University and is a graduate of Southwestern
College with a Bachelor of Arts in Philosophy/Religious
Studies and History in 2011. During his time at Wichita State
University, Taggart worked in the Kansas Public Finance Center
on various consulting projects with the City of Wichita and
Sedgwick County, Kansas.
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On the Move
Dennis Tharp
Dennis Tharp was promoted to the City of Ottawa’s Utilities Director
beginning January 31st. Dennis, who has worked for the city for 14
years, served as the interim utilities director since November, 2014. City
Manager, Richard U. Nienstedt was quick to praise Dennis. “During
Dennis’ time as interim director, he has shown the ability to reach out
to employees and residents, work with his management team to focus
on training and safety needs, address long-range planning and take
steps to continue to provide quality and efficient service,” said Nienstedt.
The utilities department reorganized in early November, following the
retirement of former Director of Utilities, James Bradley. Dennis said he’s
looking forward to his new role and collaborating with members of the
utilities department.
Jeremy Arnold
Jeremy Arnold was named the new Director of Public Utilities for the
City of Concordia in February. Jeremy replaces Chad Buckley, who
accepted the position of city manager in Norton, Kansas. As Director of
Utilities, Jeremy has charge of the operation, maintenance, repair, and
improvement of the city’s water supply and wastewater treatment plant,
and the city-operated natural gas line to the North Development area.
Jeremy is a 17-year member of the utility department. He has had
primary responsibility for the operation, maintenance, and testing of the
city’s water wells, and he was recently designated the utility department
foreman for special projects. “Jeremy has been a dedicated and
hardworking member of the department and is well acquainted with our
facilities, operations, and personnel. I am confident that in naming him
as director, we are placing the department in good hands,” said City
Manager, Larry Uri.
Ernie Smith
After nearly 46 years of dedicated service with the City of Pratt, Ernie
Smith retired as Power Plant Superintendent and is currently acting as a
consultant through May 1, 2015, as the power plant completes an
inspection and upgrade project on the city’s steam generating unit.
When Ernie started working at the power plant in 1969 he earned $1.27
an hour. Ernie said his favorite part of the job was getting to work with
the people at the plant and the challenge of keeping the plant operational.
Ernie’s 46 year journey included many changes and notable events, such
as a boiler firebox explosion in 1976 that blew out the side of the
building. Ernie’s retirement is much deserved and he will certainly be
missed when he completes his consulting work on May 1st. Likewise,
Ernie will miss the faces and power plant that he has long called his
home. However, Ernie confesses that he won’t miss the calls at 2 a.m.
when something had to be taken care of now.
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Meet KMEA’s John Seck
When John joined KMEA as a full-time employee in July, 2010, he
was ready to put to good use the valuable experience in settlements,
accounting, power scheduling, and energy trading that he had acquired
during his previous 10 years in the electric industry with Aquila and
US Energy Group. These days John’s two main areas of focus are
congestion hedging and SPP Integrated Marketplace charge allocation.
He implements KMEA’s congestion hedging strategy on behalf of each
EMP/project by participating in all phases of the annual and monthly
Southwest Power Pool ARR/TCR processes. “I enjoy the challenge of
bringing value to the cities in the complicated world of the Integrated
Marketplace,” he said. John also continues to work side-by-side with
KMEA’s database consultants as they further refine the SPP charge
allocation model that the team has developed over the last year. John
graduated from Rockhurst University in Kansas City, Missouri, with an
undergraduate degree in Finance and Economics. He and Ann have
two daughters. Allison will graduate from Rockhurst this spring while
Natalie is just getting started as a freshman at the University of Missouri. John said he was recently struck
with the realization he is getting old when it occurred to him that two of the things he looks forward to most
are a bowl of oatmeal in the morning and watching “Antiques Roadshow.”
KMEA Equipment Loan Program
After a long winter, it’s that time of year when we anxiously anticipate the balmy weather of spring. However,
soon enough, summer will be just around the corner. Along with summer, come high peak loads and the
potential for hot equipment failures. It’s nice to know you have options when you need them, so we thought it
timely to remind you about KMEA’s Equipment Loan Program.
This could be the ideal time to assess electrical systems with one of KMEA’s three infrared cameras. These
cameras detect electrical hot spots, which can translate into big savings for cities by extending the life of
equipment and preventing costly equipment damage. It also reduces the possibility of personal injury for
customers and workers. Additionally, by helping to prevent power outages, the cameras enhance customer
experience. KMEA also offers a load monitor, which records load patterns and identifies distortions in the
wave-form cycle. This analysis can help pinpoint the sources of electrical problems.
If you would like to schedule one of the infrared cameras or the load monitor this summer, please feel free
to call or email Patrick Ryan at (913) 787-5396 or ryan@kmea.com
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KMGA Gas Market Watch
In 2014, overall natural gas production
increased 6.1%, which was the strongest
growth since 2011. The Energy Information
Administration (EIA) expects production to
continue to increase in 2015 and 2016, which
will more than offset the long-term declining
production in the Gulf of Mexico.
With March being the last month of the
storage withdraw season, EIA reported storage
inventories at 1,512 Bcf as of March 6, 2015.
The storage level is 46.9% above year-ago levels
and 13% below the five-year average.
Share the News! We want to hear
from you.
It is our hope that you find this edition of
Power Factor to be interesting and informative. We
sincerely appreciate the contributions of those member
cities and individuals who provided the information
we are privileged to share here. We will continue
to spotlight both cities and city employees in future
editions. If you have news to share, employees worthy
of recognition, capital improvements underway or any
other information that can benefit the membership,
please email Patrick Ryan at ryan@kmea.com. This
is yet another means in which joint action can serve
everyone. We value your membership and improving
public power, together.
Natural gas prices have held steady since
the beginning of 2015. Mid-continent daily
spot prices are currently trading in the $2.50
to $2.60 per MMBtu range. The NYMEX
futures contract for the summer strip (April
through October) is averaging around $2.80
per MMBtu.
Rapid storage inventory builds during the
shoulder season are likely to drive down the
winter strip, leaving summer prices supported
only by coal-to-gas fuel switching in the power
sector, which could push prices to test the $2/
MMBtu price level.
*KMGA Gas Market Watch will be a recurring feature in
Power Factor to help keep you better informed.
Power Factor is a quarterly publication of the Kansas Municipal
Energy Agency, a member owned organization founded in 1980
to help Kansas municipalities pool resources and needs to provide
more affordable, reliable power to their communities.
Bob Poehling, General Manager
Patrick Ryan, Manager, Member Services, Editor
6300 West 95th Street, Overland Park, KS 66212
913-677-2884 www.kmea.com
© 2015, Kansas Municipal Energy Agency. Reprints by
permission only.
The information in Power Factor is complete and accurate to the
best of our knowledge, at the time of printing. We regret any
omissions or inaccuracies, which will be duly noted in subsequent
issues.
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