Utilities to explore renewable energy market to assess the potential options
(LOUISVILLE, Ky.) – With the recent growth in the renewable energy market, Louisville Gas and Electric Company and Kentucky Utilities Company issued a request for proposal today to assess potential renewable energy availability and associated costs.
While the utilities generate enough energy to meet the consumption needs of their current customers, they regularly monitor the market to determine if there are feasible, lower cost options.
“With the growing interest and declining costs associated with renewable energy we wanted to conduct a more formal review to explore the potential market availability,” said David Sinclair, vice president-Energy Supply and Analysis. “In addition to ensuring we continue to meet the energy needs of our customers in a low-cost manner, having a larger renewable energy portfolio also could help attract businesses with sustainable goals.”
The RFP requires that the respondents be ready to supply a minimum of 10 megawatts and no more than 200 megawatts by Jan. 1, 2022. The utilities also are requesting that the source be in Kentucky or surrounding states and be delivered to LG&E and KU’s transmission system. The agreements can range from 5 to 20 years. Additionally, new renewable energy is preferred to help support the reduction of carbon dioxide emissions. Together, with parent company, PPL Corporation, LG&E and KU have committed to a goal to help cut the corporation’s carbon dioxide emissions 70 percent from 2010 levels by 2050.
The proposals will be evaluated on cost as well as other attributes, including term of the agreement, size, operational capabilities and characteristics, and its fit within the LG&E and KU’s existing generation portfolio. The utilities are not obligated to accept any proposal or enter into any purchase agreement; and before any agreement would be subject to approval by the Kentucky Public Service Commission before being finalized.
All proposals are due by March 29 and the evaluations are expected to be completed by late May.
Louisville Gas and Electric Company and Kentucky Utilities Company, part of the PPL Corporation (NYSE: PPL) family of companies, are regulated utilities that serve nearly 1.3 million customers and have consistently ranked among the best companies for customer service in the United States. LG&E serves 328,000 natural gas and 414,000 electric customers in Louisville and 16 surrounding counties. KU serves 555,000 customers in 77 Kentucky counties and five counties in Virginia. More information is available at www.lge-ku.com and www.pplweb.com.