East Kentucky Power Cooperative has agreed to drop its plans for a coal-fired power plant and will work with environmental groups to consider energy-efficiency programs to stem rising demand for electricity, writes Scott Sloan for the Lexington Herald-Leader. In exchange for EKPC's abandonment of the plant, the groups have agreed to drop lawsuits filed against the company in recent years.
"This settlement is a win-win" for co-op members and other Kentuckians, said Elizabeth Crowe, executive director of the Kentucky Environmental Foundation. Tony Campbell, the cooperative's CEO, said in a statement, "This is a prudent business decision based on the conditions that exist today and our projections of future conditions. ... Our analysis indicates that proceeding with construction of Smith Unit No. 1 at this time is not in the best interests of our cooperative or our members."
The over half-million customer-members of EKPC's distribution cooperatives may have to pay for what has already been built of the plant, completion of which the co-op estimated would cost $819 million. The cooperative had already spent $150 million on steel and other materials and will ask the Kentucky Public Service Commission for permission to raise rates to recover those costs. (Read more)
UPDATE, Nov. 26: One of EKPC's member co-ops, Shelby Energy, "continues to draw the ire of several long-time customers who primarily are concerned with the company’s board of directors and how it functions," reports Todd Martin of The Sentinel-News in Shelbyville, noting that Shelby's representative is chairman of the EKPC board. (Read more)
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