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.
The company essentially runs its coal plants year-round, even during the winter months when its not cost-effective. An analysis by the Union of Concerned Scientists, which advocates for reduced reliance on coal, says thats been costing Westar customers $20 million a year in added fuel costs.
But market operators including the Southwest Power Pool (SPP) Westar buys and sells wholesale electricity through the organization worry that the practice hurts the market.