Month: December 2015

EKPC Finalizes Purchase Of Natural Gas Power Plant

WINCHESTER, Ky.— East Kentucky Power Cooperative (EKPC) yesterday finalized the purchase of a natural gas-fueled power plant in LaGrange, Ky., from Bluegrass Generation Co. LLC.

The power plant, located about 20 miles east of Louisville in Oldham County, features three simple-cycle natural gas units with a total net rated winter capacity of 594 megawatts.

“This transaction was the result of a year and a half of work by EKPC’s staff to determine the best option for meeting the needs of our owner-member cooperatives as safely, affordably and reliably as we can, and to evaluate the benefits and risks of this purchase,” said Anthony “Tony” Campbell, EKPC’s president and CEO.

The addition of these units will help EKPC reduce power purchases during periods of heavy demand, reduce the risks of market volatility, diversify its generating portfolio and replace generation lost due to the partial retirement of EKPC’s Dale Station in April.

Recently, the Kentucky Public Service Commission approved the purchase, opening the way for EKPC and Bluegrass Generation Co. to finalize the transaction. In approving the purchase, the PSC agreed the plant represents the most reasonable, least-cost resource available to meet the needs of EKPC’s 16 owner-member electric cooperatives.

The Oldham County plant was built in 2002. Under an existing agreement, which continues until April 2019, Kentucky Utilities/LG&E receives the output of one unit.

EKPC anticipates doubling the power plant’s current workforce of five employees.

The transaction resulted from a 2014 solicitation for proposals for electric-generating resources to replace EKPC’s Dale Station in Clark County, Ky. The 200-MW Dale Station is being partially retired in April 2016 and two of its four units are being placed in indefinite storage due to the cost to comply with new, more-stringent federal regulations.

KAEC Announces Reorganization To Align Business Model With Needs Of Electric Cooperatives

The Kentucky Association of Electric Cooperatives (KAEC) and United Utility Supply (UUS) announced today that they are reorganizing their business to better serve their members in the Commonwealth and around the country. In a deal that is expected to bring UUS members transformer cost savings while ensuring the uninterrupted supply and availability of essential electrical products, KAEC has reached an agreement with Electric Research and Manufacturing Cooperative Inc. (ERMCO) for KAEC’s affiliate, UUS, to become a distributor of ERMCO transformers. The shift to a distribution-only model will result in KAEC no longer manufacturing transformers.

“Making this transition has been a difficult decision, but it comes after a careful analysis of KAEC’s position and a realistic assessment of the challenges we face in the marketplace,” said Chris Perry, KAEC president and CEO. “This distributorship brings greater value and stability for our members and puts the Kentucky Association of Electric Cooperatives and United Utility Supply in a strong position for the future,” Perry continued. “We are proud of KAEC’s 58 years of manufacturing excellence, but we recognize our responsibility to our members to adapt and adjust our business model to meet the challenges of today. We move forward committed to the same cooperative principles upon which we were founded: to serve and support members of KAEC and UUS.”

About KAEC
Kentucky Association of Electric Cooperatives is the statewide association that provides services for the 24 local, consumer-owned electric distribution utilities in the state, as well as two generation and transmission cooperatives that produce power. Electric co-ops in Kentucky serve 843,000 member-owners, providing power to one-third of Kentucky’s population. KAEC services include representation before the Legislature, Congress, and regulatory bodies; safety training; coordination of management training; and public relations support including publication of Kentucky Living magazine, the largest circulation publication in the state with nearly 480,000 copies mailed monthly, with a readership of 1.2 million.