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PSC approves Kentucky Power biomass plant deal

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October 11, 2013 09:51 AM EST | AP


FRANKFORT, Ky. — FRANKFORT, Ky. (AP) — A contract allowing Kentucky Power Co. to buy electricity produced by a biomass-fueled plant near Hazard has been approved.

The Kentucky Public Service Commission reported the utility has said the deal is needed because of reduced power production at the company's Big Sandy plant in Lawrence County and to help meet future needs. Kentucky Power has opted to close the Big Sandy plant rather than retrofit it with an emission-removing scrubber.

The PSC said the biomass power is more expensive than other electricity but a new law directs it to consider factors other than cost in cases involving power from a biomass energy facility.

The PSC said Kentucky Power estimates the contract will increase total monthly bills by 5.99 percent in the first year that ecoPower is in operation.