PPL: LG&E, KU seek minimum of 10 MW of renewable energy through RFP

PPL (NYSE:PPL) on Feb. 4 said that its Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU) have issued a request for proposals (RFP), which requires that the respondents be ready to supply a minimum of 10 MW of renewable energy, and no more than 200 MW, by Jan. 1, 2022.

“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,” David Sinclair, vice president-Energy Supply and Analysis, said in PPL’s statement. “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.”

PPL said that the utilities are also requesting that the source be in Kentucky or surrounding states and be delivered to the transmission system of LG&E and KU. The agreements can range from five to 20 years, PPL said, adding that new renewable energy is preferred to help support the reduction of carbon dioxide emissions. PPL noted that it, LG&E and KU have committed to a goal to help cut the corporation’s carbon dioxide emissions 70% from 2010 levels by 2050.

According to the RFP, the companies will consider proposals that are reliable, feasible, and represent the least-cost means – including the cost for transmission service and required transmission upgrades – of meeting customers’ requests for renewable electric power and energy.

The RFP noted that the companies will consider all applicable factors in evaluating proposals, including:

  • The terms of the purchased power proposal
  • Seller’s creditworthiness
  • If applicable, the operating history or the development status of the seller’s generation facility, including the site chosen, permitting, and the status of an interconnection to the transmission grid
  • The anticipated availability of the power
  • All other factors such as the cost of interconnection or transmission that may affect the companies’ cost to serve their customers

Among other things, the RFP noted that for the purpose of the RFP, renewable power is that electricity generated from renewable sources, including solar, wind, hydroelectric, geothermal, landfill gas, biomass, biodiesel used to generate electricity, agricultural crops or waste, all animal and organic waste, all energy crops. The locations of those sources are limited to Kentucky and the surrounding states: Indiana, Tennessee, Ohio, West Virginia, Virginia, Missouri, and Illinois, the RFP said.

Any agreement would be subject to approval by the Kentucky Public Service Commission before being finalized, PPL said in its statement.

According to the RFP, proposals are due on March 29, and the evaluation will be completed on May 20.

About Corina Rivera-Linares 3067 Articles
Corina Rivera-Linares, chief editor for TransmissionHub, has covered the U.S. power industry for the past 15 years. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines. She can be reached at clinares@endeavorb2b.com.