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Clean-Coal Plant Set for Clark County, KY
11 /10/2004

Co-op Pledges Community Partnership
$500 million project to bring jobs, boost economy


East Kentucky Power Cooperative, headquartered in Winchester, Kentucky, announced plans on November 10 to build a clean-coal power plant in Clark County, creating hundreds of construction jobs, boosting the region’s economy and generating electricity for Kentucky homes and businesses.

“Smith 1” is the second clean-coal plant that EKPC has announced in two months, and will be the third such facility in its generating fleet. EKPC’s total investment in clean-coal technology will be more than $1.3 billion.

Commerce Secretary Jim Host, who attended the announcement at the J.K. Smith Station in the Trapp community, said EKPC has proven to be a state leader in developing clean-coal plants that significantly reduce emissions and improve Kentuckians’ quality of life.

“This is a major step in showing the rest of the country how to use coal as an increasingly clean resource,” Host said. “Kentucky already is the nation’s leader in low electric rates. Now, we’re leading the way with coal and advanced technology to fuel our future.”

Environmental and Public Protection Cabinet Secretary LaJuana S. Wilcher said the use of new technology will benefit the state.

"This unit, utilizing new technology, will burn coal cleaner, protect the environment and provide economic opportunities for our citizens," Wilcher said. "It is a great example of new technology allowing our economy to prosper while protecting our environment."

Roy M. Palk, EKPC president and chief executive officer, said EKPC will work closely with local citizens and public officials on all aspects of the project as it moves forward.

“We are proud of our reputation as a true corporate citizen in Clark County and the region,” Palk said. “This is our home, too, for more than 50 years. That’s why we are committing today to partner with the community on this project, and to adhere to the highest level of corporate citizenship.”

The $500 million project will benefit the economy and the environment, including:

• Up to 700 construction jobs at an average of $60,000 a year.
• $11 million in state property taxes in its first 20 years of operation.
• $1 million in revenue for Clark County from payroll taxes during construction.
• New market for up to 1.2 million tons of coal each year.
• Sharply reduced emissions through the latest, proven clean-coal technology called “circulating fluidized bed.”
• 98 percent less sulfur dioxide and 5 times less nitrogen oxide than a conventional pulverized coal power plant.
• Enough electricity to supply 19 cities the size of Winchester – 278 megawatts – that’s dedicated to serve the cooperative member-owners in Kentucky.

Palk said the plant is needed because of strong growth among the 16 not-for-profit distribution cooperatives that receive power from – and own – EKPC. The member systems are growing at a rate more than twice the national average, he said, and are adding more customers than any other electric utility in the state.

It will be built at the J.K. Smith Station, a 3,000-acre site owned by EKPC in Trapp that already contains seven natural gas “peaking” units that only operate on the hottest and coldest days of the year.

The site was named after J.K. Smith, a visionary cooperative leader who was instrumental in the formation of EKPC, as well as the first general manager of the Kentucky Association of Electric Cooperatives, the first manager of Fleming-Mason Rural Electric Cooperative, and the founder of the National Rural Utilities Cooperative Finance Corporation.

EKPC will seek approval from several regulatory agencies, including the Kentucky Public Service Commission and the state Environmental and Public Protection Cabinet. Smith 1 also will have to meet strict requirements of the National Environmental Policy Act (NEPA) under the federal Rural Utilities Service.

If approved by regulators, Smith #1 is expected to begin producing power in 2009. It will be identical to the E.A. Gilbert and Spurlock Station Unit #4 plants in Mason County, which are scheduled to go on-line in 2005 and 2008, respectively.

East Kentucky Power’s mission is to provide reliable power at the lowest possible cost. “We’ve been doing it for more than 50 years, and thanks to our members, we do it well,” Palk said.

“We’re proud of our history, our reputation and our commitment to local communities. Most of all, we’re proud of our vision for the future – because it is a vision for Kentucky, not for profit.”

EKPC is a not-for-profit organization providing wholesale electricity to 16 distribution cooperatives that serve 480,000 Kentucky homes, farms, businesses and industries across 89 counties. EKPC provides power through plants located in Mason, Clark and Pulaski counties, along with gas peaking units, hydro power and more than 2,600 miles of transmission lines. Together, EKPC and the member cooperatives are known as Kentucky's Touchstone Energy Cooperatives.

For more information, call Kevin Osbourn, (859) 744-4864 ext. 419 or (859) 771-3100.


Kentucky Association of Electric Cooperatives, Inc.
4515 Bishop Lane * Louisville, KY  40218
502-451-2430 * FAX: 502-459-3209
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