Boston (Platts)--7Apr2008

Kansas legislators this past weekend began a three-week recess without
resolving whether Sunflower Electric can revive its $3.6 billion plan to build
two 700 MW coal plants in western Kansas.

The Kansas State Senate last Thursday voted 32-7 to override Governor
Kathleen Sebelius' March 21 veto of a bill (SB 327) that would have enabled
the Sunflower project to go forward.

The state's House of Representatives, which had until April 20 to vote on
a possible veto override, failed to vote before adjourning late Friday and
will not return until April 30, effectively killing SB 327 this session.

The Kansas House and Senate on Friday, however, approved a new bill (SB
148) that could revive the Sunflower project and place a cap on carbon-dioxide
emissions from the plant. The new bill also retained SB 327's renewable
portfolio standard.

The Senate backed the new measure by a veto-proof 32-7 margin, but the
83-41 House vote was one short of what would be needed to override an expected
veto. Sebelius is expected to veto SB 148 within the next several days, and
supporters of the Sunflower project are expected to spend the next three weeks
trying to find one more supporter in the House.