Review of Kentucky Municipal Energy Agency's Integrated Resource Plan

Client:

Apogee Climate and Energy Transitions (Apogee) engaged Synapse to review the publicly available documents associated with the Kentucky Municipal Energy Agency's (KYMEA) 2020 Integrated Resource Plan. Synapse provided Apogee with a memo detailing its concerns with KYMEA's IRP and providing short, medium, and long-term recommendations. Dr. Thomas Vitolo summarized these findings and recommendations in a public comment at a KYMEA Board meeting on September 24, 2020.

Dr. Vitolo advised the KYMEA Board against further investments in fossil-fuel power plants or long-term contracts. He explained that the KYMEA has no need to invest in new power supplies until 2027 at the earliest and is fortunate that a 100-Megawatt coal contract is expiring in 2022, freeing KYMEA of the plant’s costs and risks. Dr. Vitolo also noted that KYMEA had an immediate opportunity to reduce its commitment to a natural gas peaking power contract with Paducah Power Systems, from 90 Megawatts to 30 Megawatts. He advised the KYMEA to actively pursue re-negotiating each of their existing power contracts in light of the much lower prices available in MISO. Lastly, Dr. Vitolo observed that for the medium and long-term perspectives, in-state solar power contracts are likely to provide low-cost, low-risk, and reliable energy to their customers.

Status: 
Project Complete