KyMEA projects more than $7 million in savings next year
Big savings are on the horizon for the Frankfort Plant Board. At FPB’s monthly meeting Tuesday night, Doug Buresh, CEO of the Kentucky Municipal Energy Agency (KyMEA), discussed KyMEA’s projected electric rates and subsequent savings FPB could realize next year. Buresh reported that KyMEA estimates that FPB stands to save $6.3 million next year through its contract with KyMEA compared to its current contract with Kentucky Utilities (KU).
Buresh noted that FPB could also save another $800,000 annually by integrating FPB’s SEPA entitlement with KyMEA for 10 years. This would allow KyMEA to sell energy and capacity from Southeastern Power Administration’s hydropower projects on FPB’s behalf.
Buresh also presented information to the board concerning the Public Utilities Regulatory Policy Act (PURPA). As part of the National Energy Act passed in 1978, PURPA was passed in response to the energy crisis of the time. It was enacted to promote energy efficiency in order to reduce demand.
As a member of KyMEA, FPB has the option to approve a Joint PURPA Implementation Plan that would pass FPB’s PURPA purchase obligations to KyMEA. The board voted to delay this vote until next month’s meeting.
The board also voted to delay a final decision on FPB’s SEPA entitlement transfer to KyMEA until next month.
In January, the Frankfort Plant Board held a public hearing to discuss cable rate increases due to exponential increases from broadcasters for retransmission charges. FPB staff negotiated retransmission rates for all of the Lexington stations, (WTVQ, WKYT, WLEX and WDKY), the Louisville CBS affiliate (WLKY), the Louisville ABC affiliate (WHAS) and bringing back Louisville’s WDRB for its top-rated local news coverage.
After receiving one public comment after last month’s public hearing, the board gave final approval on the proposed rate change. Considering the increased rates would not go into effect until March, this change will raise the existing retransmission fees from $12.03 per month to $16.39 per month. The board tabled a vote to approve an increase in multi-service discounts until next month.
The board voted to amend an FPB frozen pension plan that will allow FPB to purchase individual annuities or arrange for lump sum distribution to the five participants in the plan.
In other business, the board approved a new accounting policy for obsolete inventory, approved costs for the repair of a vertical turbine raw water pump and awarded a contract to Herrick Company, Inc. for a high service pump station valve replacement project at the water treatment plant, and awarded a contract to Brownstown Electric Supply Company for a pad mounted transformer.
The FPB Board of Directors’ next monthly meeting will be Tuesday, March 20, 2018 at 5 p.m. at the FPB administration building at 151 Flynn Ave in Frankfort.