Board of Public Utilities Selects Black & Veatch to Help Ensure Cost-Effective, Reliable Long-Term Power Needs

Work will include comprehensive review of BPU’s Electric Master Plan

Kansas City, Kan. (February 8, 2006) – The Kansas City Board of Public Utilities (BPU) and Black & Veatch, a global engineering, consulting and construction company, announced today an agreement that will help ensure a long-term supply of safe, reliable and cost-effective energy for BPU customers in the growing Wyandotte County area, while further strengthening the regional power supply.

In 2003, BPU developed a far-reaching Electric System Master Plan that identifies the utility’s need to meet future demands for power. The study revealed that by 2023, BPU will need approximately 20 percent more power than it currently generates to meet expected customer demand while providing reliable electricity.

As part of an overall agreement, Black & Veatch will review the Master Plan to examine all aspects of the study’s findings, including the production of additional electric generation at a proposed new power plant. The initial step will provide independent review of BPU’s potential site, technology choice and projected plant size, and determine whether the findings are in the long-term best interest of its customers and the region. The contract also calls for Black & Veatch to assist with licensing support, project management, engineering, procurement and construction management of any future plant that is projected to be needed.

“We want to assure our customers that this strategic approach will validate that our plans are in line with the projected growth of our service area and our customers’ growing demand for energy,” said Don L. Gray, Acting General Manager of BPU. “Black & Veatch is recognized worldwide. The company’s vast experience in planning and constructing large generation plants makes them a logical choice to provide these services for our project.”

Dean Oskvig, President & CEO of B&V Energy, said, “As part of our comprehensive review of BPU’s Master Plan, we will verify the utility’s need for additional generating capacity and compare the pros and cons of potential plant sites in the region. We also will explore other generating technologies in order to validate that BPU’s long-term plans will reliably meet its future power needs, balancing both the economic needs of its customers and the environmental needs of the region.”

The in-depth review of BPU’s Electric Master Plan will consist of several studies: First, an evaluation of projected load growth and the capability of BPU’s existing generators; a study of available sites for new generators from the perspectives of infrastructure availability, fuel availability and environmental impacts; and studies of the tradeoffs in up-front capital costs and ongoing operating costs of alternative generating technologies. Each of the studies will be conducted with appropriate risk assessments to account for less than predictable fuel prices, future environmental regulations and regional economic conditions.

“We need to be sure that we have looked at every possible scenario to ensure that we take into account not only growing power needs, but also what is the best solution for everyone involved. Black & Veatch can provide us insight into a full range of options that may be available to us, allowing us to weigh those options appropriately before moving ahead,” said BPU’s Gray.

The utility’s Nearman Creek Power Station is a 235-megawatt coal-fired generating unit that is nearly 25 years old—it is BPU’s workhorse for producing power. However, the production of the Nearman plant along with the older Quindaro Power Station, is not sufficient to meet growing demands for reliable power in the future. BPU recently brought online an 80-megawatt gas-fired generating unit at the Nearman site, which will be used during peak demand periods and in emergency situations. However, the Master Plan outlines a need for additional power by 2012. The plan identifies the Nearman site as a likely location for expansion, and the original design of the Nearman plant projected future generation at that site.

The contract with BPU represents the latest project award for Black & Veatch in the energy market. The 90-year old company’s projects span all aspects of power generation and delivery, and have spurred growth in the number of its energy professionals by more than 15 percent, with much of the engineering and design work for the facilities conducted from the company’s Overland Park, Kan., location. Over the last 12 months, the company has added more than 600 professionals within its energy business, and expects to add another 500 to 700 positions this year to accommodate growth in worldwide energy projects.

About BPU

BPU’s water department was originally created in 1909, and its electric utility was operational in 1912. The purpose of the utility, then and to this day, is to provide the highest quality electric and water services at the lowest possible cost. Today the publicly owned utility serves approximately 69,000 electric and 55,000 water customers, primarily in Wyandotte County, Kansas. The mission of the utility and its 650 employees is “to be the utility of choice and the workplace of choice, while improving the quality of life in the communities we serve.” BPU’s Web site is at www.bpu.com.

About Black & Veatch

Black & Veatch Corporation is a leading global engineering, consulting and construction company specializing in infrastructure development in energy, water, information and government markets. Founded in 1915, Black & Veatch develops tailored infrastructure solutions that meet clients’ needs and provide sustainable benefits. Solutions include conceptual and preliminary engineering services, engineering design, procurement, construction, financial management, asset management, information technology, environmental, security design and consulting, and management consulting services. The employee-owned company has more than 90 offices worldwide. Black & Veatch is ranked on the Forbes “500 Largest Private Companies in the United States” listing. The company’s Web site address is www.bv.com.

Media Contact:
Susan Allen
Board of Public Utilities
913-573-9173
sallen@bpu.com

Carl Petz
Black & Veatch
913-458-4685
petzcf@bv.com

###