The Kentucky Municipal Power Agency—comprising Paducah Power System and the Princeton Electric Plant Board—announced on Wednesday that it has inked a deal to supply Henderson Municipal Power & Light with 32 megawatts of capacity and energy.
Princeton Electric Plant Board General Manager Chris Burton shared his enthusiasm with WPKY’s News Edge over this newly finalized agreement. He explained that the board has spent the past eight to ten months working on this opportunity.
click to download audioBurton added that the agreement came together thanks to honest and transparent conversations between the three utility managers involved. He also said that it’s encouraging to see that successful partnerships can still be achieved through open collaboration.
Officials explained that the partnership enables Henderson Municipal Power & Light to take advantage of KMPA’s position in the regional power markets, creating a more stable and cost-effective supply for the Henderson utility’s 12,000 customers. KMPA officials also highlighted that this agreement helps to protect customers from the volatility of wholesale market prices compared to other options.
Henderson Municipal Power & Light General Manager Brad Bickett said in a written statement that this partnership ensures the utility can secure the capacity and energy its customers need, while also supporting local economic development. Bickett emphasized that this collaboration highlights the importance of municipal utilities working together across Kentucky.
Paducah Power Chief Executive Officer Dave Carroll said this agreement better aligns their generation assets with customer demand, allowing the utility to make more efficient use of its resources. He also noted that innovative partnerships with other utilities will become increasingly important in the future as the industry faces new challenges.
According to officials, energy from the three utilities will begin flowing to Henderson Municipal Power & Light in 2027.
