A Diversified Portfolio
The electricity supplied to the Kentucky Municipal Energy Agency’s All Requirements (AR) members comes from a variety of power sources including solar, natural gas, coal, and hydroelectric.
KYMEA pulled together its initial set of power supply resources to meet the AR Project needs at significant wholesale power cost savings from the cost of its previous power supply arrangement.
The Agency practices modern portfolio theory (MPT) when assembling its power supply portfolio. The idea behind MPT is to draw from a diverse set of environmentally responsible power supply resource options (fuels, technologies, sizing, timing, location, etc.), focusing on long-term, low cost, stable rates while minimizing risk. Disciplined power supply investing will ensure KYMEA’s success for decades to come.