Development of KYMEA
In September of 2015, after 18 months of study and discussion, ten municipal electric utilities entered into an Interlocal Cooperation Agreement creating the Kentucky Municipal Energy Agency (KYMEA), a joint public agency. KYMEA was formed to facilitate effective collaboration among its members to do all things necessary or convenient to serve the current and future electric power and energy requirements of the members and to provide assistance to the members related to their electric power and energy utility systems.
KYMEA exists to serve its members. Members may choose to enter into contracts with KYMEA for power supply or other services. Members also have the flexibility to establish projects for the benefit of one or more members, such as the All Requirements Project (AR Project), which has been created to acquire power supply resources to serve the needs of eight participating all requirements members. The business model objective of KYMEA is to provide cost-effective resources and services for the benefit of its members to enable them to achieve objectives they have set for themselves more efficiently and at lower costs than they could achieve individually.
The objective of KYMEA is to provide cost-effective resources and services for the benefit of it's members to enable them to achieve objectives they have set for themselves more efficiently and at lower costs than they could achieve individually.
September 2015: The Cities of Bardwell, Falmouth, Madisonville, Paris, and Providence, the Frankfort Plant Board, the Barbourville Utility Commission, the Benham Power Board, the Corbin City Utilities Commission, and Owensboro Municipal Utilities enter into an Interlocal Cooperation Agreement forming KYMEA. The Agency's Bylaws are adopted on September 24, 2015.
July - August 2016: Eight members (Barbourville, Bardwell, Corbin, Falmouth, Madisonville, Paris, Providence, and the Frankfort Plant Board) enter into All Requirements Power Sales Contracts with KYMEA. The Agency completes the assembly of an initial portfolio of resources consisting of purchase power agreements with Big Rivers Electric Corporation, Illinois Power Marketing Company, and Paducah Power System.
September 2016: The City of Berea (Berea) asks to join KYMEA and the Interlocal Cooperation Agreement is amended to add Berea as its eleventh member. Berea enters into a Transmission Service Agreement with KYMEA.
May 2017: Deliveries of electricity to the Benham Power Board and the City of Paris begin using transmission service procured on their behalf by KYMEA.
December 2017 - April 2018: The City of Paris and KYMEA agree to enter into an agreement to utilize the Paris diesel generation as part of the Agency's AR Project power supply portfolio. The all requirements members enter into agreements for KYMEA to use their entitlements to hydroelectric power from the Southeastern Power Administration (SEPA) as part of the AR Project power supply portfolio.
January 2018: KYMEA hires its first president and CEO.
August 2018: The Agency executes a 20-year agreement with MAP® Energy and Open Road Renewables for 62.5% of the output of the 86MW Ashwood Solar I power plant as part of the Agency's AR Project power supply portfolio. The plant is scheduled to go into service in late 2022.
November 2018: The Agency opens permanent offices in Louisville, Kentucky.
May 2019: At the stroke of midnight on May 1, a new electric power era began for eight communities that are members of the Kentucky Municipal Energy Agency (KYMEA). After decades of purchasing electricity from Kentucky Utilities Company, the Frankfort Plant Board and the municipal electric utilities of Barbourville, Bardwell, Corbin, Falmouth, Madisonville, Paris, and Providence are now being served by KYMEA, the joint public agency they created to obtain lower-cost, reliable electricity for their communities.
July 2020: The Agency begins its 2nd fiscal year of operation with the KYMEA Board approval of a 4.19% reduction in member power supply and transmission bills. In response to the COVID-19 pandemic, the KYMEA Board approved the COVID-19 Rate Relief Plan (RRP) and the Member Late Payment Protection Plan (LPPP). The RRP shifts power costs and member usage risks, which are typically borne by the members, to KYMEA. The shifting of these risks provides certainty to the member communities that their monthly power bill rates will remain stable as the members’ customers hard hit by the pandemic move to reopen their businesses and begin to recover economically. The LPPP permits the agency to negotiate payment terms and suspend late payment fees for its members who may have difficulty paying their KYMEA power bills due to the pandemic. These programs will stay in effect through June 2021.
July 2021: On July 21, 2021, Kentucky Municipal Energy Agency (KYMEA) adopted its Integrated Resource Plan (IRP2020). IRP2020 is a comprehensive report analyzing the Agency's current power supply and future options against risk scenarios to develop a new portfolio for the Agency's near-term needs.
June 2022: The Agency executed a 5-year agreement with Duke Energy Indiana for 60 megawatts (MW) of capacity and energy as part of the Agency's AR Project power supply portfolio. Service under the contract commenced on June 1, 2022.