Boston (Platts)--19May2008

Kansas Governor Kathleen Sebelius late Friday vetoed two related bills
that supporters of Sunflower Electric Power's 1,400-MW coal project had
attached to economic-stimulus measures to secure an air permit for the
electric cooperative's $3.6-billion project.

"Rather than working toward a compromise solution, legislative leaders
recklessly chose to jeopardize important initiatives for businesses and
communities across our state by combining them with energy legislation I have
previously vetoed twice," Sebelius said in a message to state legislators
explaining her vetoes of H.B. 2412 and H.B. 2802.

H.B. 2412 would have granted an air permit to the Sunflower coal project,
forbid the Kansas Secretary of Health and Environment from issuing any order
or permit with provisions more stringent than federal requirements and
would have established a 10% renewable mandate in 2012, 15% in 2016 and 20% in
2020.

HB 2802 would give the Kansas City Board of Public Utilities the first
option to purchase up to 200 MW from the Sunflower project, followed by state
electric cooperatives and municipal utilities, and would have required
Sunflower to meet certain RPS mandates four years earlier than other
electricity suppliers.

Sebelius said she continues to support a number of provisions in H.B.
2412, such as economic-stimulus provisions and the RPS, and hopes to pass them
later.

The Senate approved both bills by veto-proof margins, but the House did
not. Bill supporters could try to vote again May 29--the last day of the
legislative session.