Seeking to slow 'Cap and Trade,' KCP&L spends on lobbying
First quarter report shows local utility spent $70K
Kansas City Power and Light
Wednesday, April 28, 2010
KCP&L spent $70,000 in the first quarter of 2010 for expenses related to lobbying members of Congress on proposed energy regulation, and the utility’s CEO has shelled out tens of thousands of dollars of his own over the last few years to a Washington-based utility trade group that also lobbies the federal government.
The company made lobbying papers public April 19 in compliance with the Lobbying Disclosure Act of 1995. KCP&L employs its own lobbyist, Mike Poling, who works out of Washington, D.C. The company hopes to slow down the implementation of a bill being crafted by Sens. John Kerry (D-Mass.) Joe Lieberman (I-Conn.) and Lindsey Graham (R-S.C.). The principle element of the bill is a “cap and trade” system that would ultimately create a market for allocating, buying and selling carbon allowances.
The bill has neither hit the floor for debate, nor has it been introduced in committee, but the lobbying money came in anyway.
“We want to make sure this bill doesn’t unfairly penalize Midwest states,” Chuck Caisley, the senior director of public affairs for KCP&L said.
He predicted a spike in rates within the first five years if KCP&L doesn’t receive sufficient carbon credits. States in the Midwest rely on coal-based power more than states on either coast. KCP&L generates nearly three-quarters of its electricity from coal, with the rest from wind, nuclear and natural gas.
Caisley insisted the utility supports the overarching mission of the bill, to reduce carbon-emissions to 80 percent of 2005 levels by 2050, but the company worries about the speed at which the bill would do so.
“It’s easy to say, ‘Yes, let’s create these green jobs.’ But right now we can’t get anymore wind out of Eastern Kansas,” Caisley said.
Natural gas and wind pollute less than coal, but transmitting the power is cost-prohibitive.
“For those of us who serve Midwest states, we need to make sure that we’re not hurt,” said Rep. Emanuel Cleaver (D-Mo.). “I think that’s ultimately what [KCP&L will] be concerned about because we are heavily coal-using states. Missouri of course has a great deal of economic involvement with coal.”
Cleaver called weighing the environmental benefits of reducing carbon emissions and economic development a tough balancing act.
And for that $70,000? Cleaver said he had no idea they spent the money and he hasn’t had “extensive conversations with representatives from KCP&L about the climate change bill.”
Still, the two camps are talking.
“I did have lunch with several of their top executives in Kansas City three weeks ago,” Cleaver said. He asserted they just discussed the Green Impact Zone.
“KCP&L has perhaps the greenest record of any power company in the country: They’ve signed an agreement with the Sierra Club, they’ve committed to the Green Impact Zone … they are far ahead of most power companies.”
Caisley seconded that and emphasized the relationship with the Sierra Club, saying they’ve promised to produce 300 megawatts of power from renewable and cleaner energy by 2012.
Rep. Sam Graves (R-Mo.) has also been meeting with power companies — and was proud to say so.
“I’m talking to all of my power companies,” he said. “Rates are going to go up exponentially and nobody can argue that.”
Graves, like Cleaver, said he had no idea about the amount the company spent on lobbying this quarter and suggested asking the company instead of him. He did say, though, he has not met with anyone from the company in Washington.
Michael Chesser, Great Plains Energy’s CEO, has given thousands of dollars to Republican candidates in the past. In 2008, he donated $5,000 to Edison Electric Institute – an association of publicly traded electric companies.
Edison’s Political Action Committee has donated nominal amounts to both Graves and St. Louis area Rep. Russ Carnahan (D-Mo.). Edison did not return calls for interviews.
The status of the bill is uncertain: The White House and Democratic leaders are now pushing immigration reform, perhaps in the place of climate-change legislation. Expect the flurry of lobbying to continue, though, because bottom lines are at stake.
“Rates will go up, profits will not,” said Caisely. He said if the bill passes and the company needs to buy carbon offsets, plants will close immediately.
But with no other company to turn to, residents may just not show any sympathy.
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