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City of Chanute projects citizens to save $100,000 in energy costs during January alone

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NEWS RELEASE ISSUED JANUARY 14, 2014 BY THE CITY OF CHANUTE

City Predicts Savings from Southwind Energy Group

The City of Chanute projects that $100,000 will be saved in energy costs during the first month of 2014, and savings will continue to accrue each month. Last year, the City of Chanute withdrew its membership from the Kansas Power Pool (KPP) and set up its own regional energy group, Southwind Energy Group (SEG), to secure adequate, reliable, and economic sources of electrical energy. This means that the City now takes transmission service directly from the Southwest Power Pool (SPP), rather than through their former membership with KPP. The SPP is a Regional Transmission Group, mandated by the Federal Energy Regulator Commission to ensure reliable supplies of power, adequate transmission infrastructure, and competitive wholesale prices of electricity.

"We have created a system with lower administration costs, lower energy costs, and lower transmission costs", said Larry Gates, Director of Utilities. He estimates the cost savings for citizens to be one-half cent/kw for January 2014. "What's really incredible about this savings is that the SPP has had a 10-15% increase in transmission costs. But because of this new structure, we are able to cover that increase and still see some good savings", said Gates.

The Southwind Energy Group officially began on January 1, 2014. Members include Arcadia, Centralia, Chanute, Iola, Fredonia, and Sabetha. The City of Chanute is the Designated Market Participant for all of the SEG cities.

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