PSC Approves Biomass Plant Deal in Eastern Kentucky

Oct 10, 2013
Millicent Media

The Kentucky Public Service Commission has approved a deal for an eastern Kentucky utility to buy electricity from biomass.

The proposed biomass plant will be in Perry County and is expected to be operating by 2017. It’ll burn wood scraps for energy, and replace some of the capacity from the coal-fired Big Sandy power plant. Big Sandy will be retired soon in light of tougher pollution regulations.

Usually, the commission has to decide a case based on what electricity is the least-cost reasonable option. But PSC spokesman Andrew Melnykovych says this case was different.

Eastern Kentucky Biomass Plant Proposed

Oct 9, 2013

Lexington-based ecoPower wants to build a biomass plant in Perry County. The plant would burn wood scraps to create electricity.

The utility Kentucky Power wants to buy all that electricity, and the state Public Service Commission will decide whether to allow the company to do so.

The PSC is tasked with making decisions on the basis of whether both the proposal and possible rate increases are “fair, just and reasonable.” A bill passed during last year’s General Assembly directs the commissioners to give additional weight to biomass projects.