At the stroke of midnight on May 1, a new electric power era began for eight communities that are members of the Kentucky Municipal Energy Agency (KYMEA). After decades of purchasing electricity from Kentucky Utilities Company, the Frankfort Plant Board and the municipal electric utilities of Barbourville, Bardwell, Corbin, Falmouth, Madisonville, Paris, and Providence are now being served by KYMEA, the joint public agency they created to obtain lower-cost, reliable electricity for their communities. After years of planning and preparation, the May 1 switch to begin deliveries from the new KYMEA power supply portfolio occurred seamlessly, without so much as a blink in the lights in the thousands of homes served by the members. This “Go-Live” beginning of the new operations marks a major milestone for the communities and their new power supply agency.
The event represents an important step toward achieving KYMEA’s municipal members’ goal of having greater control over their own power supply and associated services, while being able to reduce the costs of the power they provide to their residents and businesses. KYMEA offers wholesale electric power supply, transmission, and power dispatch and planning services to the municipal utilities of its eleven member communities, which include Owensboro Municipal Utilities, Berea and Benham.
KYMEA assembled the initial set of power supply resources to meet its eight All Requirements Project members’ needs at significant wholesale power cost savings compared to their previous power supply arrangement. The Agency practices modern portfolio theory (MPT) when developing its power supply portfolio. The MPT concept draws from a diverse set of environmentally responsible power supply resource options (fuels, technologies, sizing, timing, location, etc.), and focuses on maintaining long- term, low cost, stable rates while minimizing risk. This disciplined power supply planning will help ensure that KYMEA’s members benefit from embarking on this new era for many years to come.
The Agency has achieved a diverse power supply portfolio comprising natural gas-fueled power from Paducah Power System, hydropower from the Southeastern Power Administration, coal-fueled power from Big Rivers Electric Corporation (located in Henderson, Kentucky) and Illinois Power Marketing Company, diesel generation from the City of Paris, and solar power from E.ON Climate and Renewables (located in Lyon County, Kentucky).
The KYMEA members have worked hard to create an Agency that will benefit communities and citizens across Kentucky and create economic development opportunities for many future decades. “They understood there would be many challenges along the way,” said Doug Buresh, President and CEO. “However, the members also knew that by working together, member municipal electric systems could reliably provide power and related services to their customers on a more economical basis than could be provided independently or through other providers.”
About Kentucky Municipal Energy Agency
Kentucky Municipal Energy Agency was formed in September of 2015 under Kentucky statutes that provide for cooperation among municipalities and other local governmental entities on endeavors that can be accomplished better by working together. By August 2016, eight of the eleven members (Barbourville, Bardwell, Corbin, Falmouth, Madisonville, Paris, Providence, and the Frankfort Plant Board) entered into All-Requirements Power Sales Contracts with KYMEA. The Agency also completed the assembly of the initial power supply portfolio consisting of purchase power agreements with Big Rivers Electric Corporation, Illinois Power Marketing Company, and Paducah Power System. In September of 2016, the City of Berea expressed an interest in joining KYMEA as its eleventh member. KYMEA began providing transmission services to the cities of Benham and Paris in May of 2017. By April 2018 the Agency had added diesel generation from Paris and SEPA to its power supply portfolio. In January of 2018, the Agency moved into its operational phase, and President and CEO, Doug Buresh, was hired.
The Kentucky Municipal Energy Agency (KYMEA) held its Office Dedication and Ribbon Cutting Ceremony on Wednesday, November 14, 2018. More than 100 officials and supporters from across the Commonwealth and beyond gathered to celebrate the Agency’s opening of its permanent offices located on Eastpoint Parkway in northeast Louisville.
KYMEA’s office includes a state-of-the-art Market Analytics Center (MAC). Data analyzed in the MAC allows KYMEA to oversee wholesale power marketing and trading, pursue cost reductions, improve reliability, monitor daily power consumption and provide predictive and prescriptive analytic insights that will enable member communities to optimize operations.
More information is available at www.kymea.org.