Daily Independent (Ashland, KY)

Local News

March 28, 2013

Ky. Power seeking capacity proposals

Utility company looking for 250 megawatts for the long term

FRANKFORT — Kentucky Power Co., an operating unit of American Electric Power, has issued a request for proposals to purchase up to 250 megawatts of long-term capacity and energy.

The request is in connection with the utility’s search for the lowest-cost solution to replace the impending loss of generation at Kentucky Power’s Big Sandy Plant Unit 1 near Louisa. Unit 1, a 278 megawatt coal-fired generating station, is scheduled for retirement in 2015.

The RFP seeks proposals from eligible bidders capable of being on line by June 1, 2015, for a “bundled product” that includes capacity (megawatts), energy (megawatt hours) and ancillary services if available.

The RFP is also  seeking proposals from suppliers who are willing to sell power through a Power Purchase Agreement, Tolling Agreement and Asset Purchase Agreement or other proposals defined by the RFP. In addition, the RFP also seeks demand-side management and cost-effective energy efficiency proposals.  

The RFP is one option Kentucky Power is considering to replace the generating capacity of Unit 1. Another option under consideration is to convert Unit 1 to natural gas generation.

“This RFP will help us determine the best path forward to replace generation at our Big Sandy Plant Unit 1, which will be lost as a result of pending environmental regulations and agreements,” said Greg Pauley, president and chief operating officer of Kentucky Power. “These proposals will not bind Kentucky Power or AEP to any particular path at this point, but will help us evaluate our options for replacing generation to meet our customers’ needs.”

Proposals are due by June 11 and may be submitted to American Electric Power Service Corp., Kentucky Power Co. RFP Administrator, 155 W. Nationwide Blvd., Columbus, OH 43215. Questions about thes RFP can be directed to 2013KentuckyPowerRFP@aep.com.

Kentucky Power provides electricity to approximately 173,000 customers in all or parts of 20 eastern Kentucky counties. The company is headquartered in Frankfort and has major operating facilities in Ashland, Hazard, Louisa and Pikeville.

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