After plans moved forward to retire the coal-fired generators at the Big Sandy Power Plant outside Louisa, Kentucky, the question remained, what does it mean for the energy future of eastern Kentucky?
The answer came to light last week when the state Public Service Commission approved an agreement between the Sierra Club and American Electric Power (AEP) that will help expand clean energy in the region. AEP's subsidiary, Kentucky Power, has agreed to invest in clean energy programs with a special focus on low-income community developments in Lawrence County, which sits on the eastern edge of the state next to West Virginia.
"This is an important moment in Kentucky’s history -- a win for public health and the dawn of a new economic era," said Alice Howell, chair of the Cumberland Chapter of the Sierra Club in Kentucky. "However, the impacts of this economic transition go beyond this one case. It is critical that we continue to look for ways to work with the governor to support clean energy investments in eastern Kentucky to help replace coal-related jobs."
The agreement commits Kentucky Power to increase energy-efficiency investments over the next five years, from $3 million this year to $4 million in 2014, $5 million in 2015, and $6 million per year from 2016 to 2018. These in-state energy-efficiency investments will bring jobs directly into the Kentucky Power service areas while decreasing the total energy consumption of eastern Kentucky. The deal includes 100 megawatts of wind energy in Kentucky Power's upcoming planning process, which acts as a "blueprint" for the company's electricity source for the next few years.