The Kentucky Municipal Power Agency (KMPA), comprised of Paducah Power System (PPS) and Princeton Electric Plant Board (PEPB), has signed a deal to provide 32 MW of capacity and associated energy to Henderson Municipal Power & Light (HMPL) in Henderson, Kentucky, 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.
The partnership allows Henderson Power & Light to benefit from KMPA’s position in the regional power markets, creating a stable and cost-effective path for reliable power to HMPL’s 12,000 customers. It also lessens the exposure to wholesale market price volatility for Henderson’s customers compared to alternatives.
“This collaboration allows HMPL 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 HMPL General Manager Brad Bickett.
Paducah Power CEO Dave Carroll said, “This deal better aligns our generation asset portfolio with our PPS customer load requirements enabling us to effectively use our resources. 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.
Princeton Electric General Manager Chris Burton expressed excitement about the contract. "It will help our utilities better align our baseload demand with our baseload capacity,” he said. This agreement was made possible through honest and transparent discussions among the three utility managers involved. It’s refreshing to see that deals like this can still be accomplished through open collaboration.”
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 (KYMEA), a joint public agency serving more than 87,000 residents in eleven communities.
