The Kentucky Municipal Power Agency, which is comprised of Paducah Power System and Princeton Electric Plant Board, has signed a deal to provide 32 megawatts of capacity and associated energy to Henderson Municipal Power & Light beginning in 2027.
The ten-year agreement utilizes KMPA’s available energy and helps the three utilities to manage the growing electricity market pressures that are challenging utilities across the nation, according to a release from the three utilities.
The partnership allows Henderson Municipal Power & Light to benefit from KMPA’s position in the regional power markets, creating a stable and cost-effective path for reliable power to HMP&L’s 12,000 customers, according to the release.
It also lessens the exposure to wholesale market price volatility for Henderson’s customers compared to alternatives, said the release.
“This collaboration allows HMP&L to secure necessary capacity and energy for our customers and benefits economic development in our community, while reinforcing the importance of municipals working together across Kentucky,” said HMP&L General Manager Brad Bickett.
“This deal better aligns our generation asset portfolio with our PPS customer load requirements enabling us to effectively use our resources,” Paducah Power CEO Dave Carroll said. “Partnering with other utilities innovatively is only going to become more important in the future as we deal with the stresses of our industry,” he added.
Paducah Power System, the majority owner of KMPA, has a history of partnership with other utilities. PPS provides, under a ten-year contract, 60 MW of capacity and associated energy to the Kentucky Municipal Energy Agency, a joint public agency serving more than 87,000 residents in eleven communities, said the release.
