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KANSAS CITY BOARD OF PUBLIC UTILITIES (BPU)

UNDERSTANDING DATA CENTERS AND BPU’S ROLE

WHY WE CREATED THIS FAQ:

As interest in data centers continues to grow across the country, many people have questions about how these facilities could affect their electric service, water service, utility costs, and our community. This FAQ is intended to answer common questions about BPU’s role, how new projects are reviewed, and the steps BPU takes to protect existing customers.

It is important to understand that BPU does not decide whether a data center or other development project is approved. Decisions related to zoning, permits, development agreements, and potential incentives are made through the Unified Government’s public review process.

BPU’s job is to provide safe, reliable electric and water service. If the appropriate power and water resources are available and the customer meets all applicable requirements, BPU provides service in accordance with our policies, rates, and operating standards.

BPU is also committed to protecting existing customers. Data centers and other large customers are expected to pay the costs required to serve their operations, including the infrastructure needed to provide electric and water service. BPU does not provide discounted utility rates or incentives that shift costs onto residential or small-business customers.

Today, more than half of the electricity BPU provides comes from green energy resources such as wind, hydropower, solar, and landfill gas. BPU also plans to add approximately 96.4 megawatts (MW) of solar generation and 96.4 MW of battery storage to support reliability and meet future energy needs.

FREQUENTLY ASKED QUESTIONS

GOVERNANCE & BPU’S ROLE
  1. Who decides whether a data center can be built in Wyandotte County?
    The Unified Government (UG) makes decisions related to zoning, land use, permitting, development agreements, and potential economic development incentives. Those decisions are made through public processes that include community input.
    BPU does not decide whether a data center or other development project is approved. BPU’s role is to determine whether the utility can safely and reliably provide electric and water service.
  2. Why is BPU discussing data centers and large energy users?
    BPU is discussing data centers and other large energy users because these projects can require significant electric and water service.
    As a utility, BPU is responsible for evaluating whether service can be provided safely, reliably, and without shifting costs to existing customers.
RELIABILITY & ELECTRIC SERVICE
  1. Does BPU have enough power to serve a data center?
    BPU can serve some large customers that are new to our systems.
    Each project that comes to our area is different. The amount of power needed, when the service is needed, and what is available at the time can all vary. While BPU has capacity available, we do not have unlimited capacity available for every project that may be proposed.
    Our goal is to make sure new growth can be served while continuing to provide reliable service to the customers who already depend on us every day.
  2. Will a data center make my power less reliable?
    No. Safety and reliability remain BPU’s top priorities.
    Before a large customer is connected to the system, BPU evaluates potential impacts and identifies any upgrades needed to maintain reliable service. Large customers must meet reliability requirements that help keep the electric system dependable for everyone. 
  3. What is the Southwest Power Pool (SPP), and why does it matter?
    The Southwest Power Pool (SPP) helps manage the electric grid across much of the central United States, including Kansas.
    SPP establishes reliability requirements for utilities like BPU and helps ensure enough electricity is available to meet customer demand across the region.
    BPU plans for these requirements to ensure reliable electric service for all of our customers.
  4. What is a reserve margin?
    A reserve margin is extra power that is available above what BPU expects customers to use on the busiest days of the year.
    This helps ensure we have enough electricity during extreme weather, periods of high demand, or unexpected equipment outages. Think of it as an additional buffer that helps keep the lights on when demand is at its highest and most critical.
  5. Is BPU investing in additional energy resources?
    Yes.
    Today, more than half of BPU’s retail electric sales come from sustainable, green energy resources.
    BPU also plans to add approximately 96.4 megawatts (MW) of solar generation and 96.4 MW of battery energy storage. Battery storage helps improve reliability by storing energy for use when it is needed most.
  6. Do data centers receive priority restoration during an outage?
    No.
    BPU follows established restoration procedures designed to restore power safely and efficiently to the greatest number of customers as quickly as possible.
    During a major outage, restoration efforts generally focus on:
    1) Public safety and critical services, such as hospitals, emergency services, and water treatment facilities.
    2) Repairs that restore power to the largest number of customers.
    3) Individual outages and smaller service interruptions.
    Data centers do not take priority over critical community services or residential neighborhoods in BPU’s restoration process.
CUSTOMER PROTECTION & RATES
  1. Will my electric rates go up because of a data center?
    No.
    BPU’s goal is to ensure that existing customers do not bear the costs of serving new large-load customers.
    Large customers are expected to pay the costs associated with serving their operations, including infrastructure and system improvements required to provide service.
  2. Will data centers receive discounted utility rates?
    No.
    BPU does not provide discounted electric or water rates to data centers or other large-load customers. Customers are expected to pay applicable rates and the costs required to serve their operations.
  3. How does BPU protect existing customers?
    Before serving a large customer, BPU evaluates the impact the project could have on the electric and water systems and determines what equipment or system improvements may be needed.
    BPU may also require the customer to provide financial protections to help ensure the costs of serving the project are not passed on to existing customers.
WATER & ENVIRONMENT
  1. Does BPU have enough water to support future growth?
    Yes.
    BPU regularly reviews our water system to make sure we can continue meeting the needs of current customers while planning for future growth. Based on those reviews, BPU has abundant water resources to serve customers today and support future development.
  2. Where does BPU’s water come from?
    BPU’s water comes from a large underground water source located about 130 feet beneath the Missouri River.
    This underground water supply is naturally replenished by mountain snowmelt that travels through the watershed from states such as Montana and Wyoming. As the water moves through layers of sand and gravel underground, it is naturally filtered before being pumped to BPU’s treatment plant.
    Because this water source is underground and continuously replenished, it provides a safe, reliable, and abundant supply of water for our community.
  3. How much water does a data center use?
    Water use depends on the facility’s size and how it is designed to stay cool.
    Before providing service to any large customer, BPU evaluates projected water demand, system capacity, and infrastructure requirements.
  4. What environmental factors are considered when evaluating a data center?
    Data centers are one of many types of large businesses that use electricity and water. Before providing service, BPU evaluates each project to make sure we can continue providing safe and reliable service to our existing customers.
    BPU’s role is to determine whether electric and water service can be provided safely and reliably. Decisions about zoning, permits, environmental requirements, and project approvals are made by other governmental and regulatory agencies.
COMMUNITY COMMUNICATIONS & APPROVALS
  1. How will BPU keep customers informed?
    BPU will share information through public meetings, board updates, customer communications, social media, community outreach, media engagement, and discussions with elected officials and stakeholders.
    As projects move forward and new information becomes available, BPU will continue to provide updates.
  2. Will data centers receive tax incentives?
    Any tax abatements, development agreements, or economic development incentives would be considered through the Unified Government’s public approval process.
    BPU does not determine or provide those incentives.
QUINDARO REDEVELOPMENT
  1. What is the status of the Quindaro site?
    BPU and Power Transitions continue discussions regarding the future redevelopment of the Quindaro site.
    A final transaction has not yet been completed. Any future use of the property will be subject to agreements, regulatory requirements, and applicable approval processes.
    BPU will provide updates as significant milestones occur.
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