Paducah and Princeton agree to sell electricity to Henderson

An agreement between utilities in Paducah and Princeton will provide additional electric capacity to Henderson.

The Kentucky Municipal Power Agency, an association between Paducah Power System and the Princeton Electric Plant Board, has entered into a 10-year agreement with Henderson Municipal Power and Light. The agreement will see Paducah and Princeton directing 32 megawatts to Henderson starting in 2027.

Henderson Municipal Power and Light General Manager Brad Bickett said, “This collaboration allows HMPL to secure necessary capacity and energy for our customers and benefits economic development in our community, while reinforcing the importance of municipals working together across Kentucky.”

The move helps Henderson keep a steady, affordable power flow while keeping them out of the volatility that is the wholesale electric market.

Paducah Power CEO Dave Carroll said, “This deal better aligns our generation asset portfolio with our PPS customer load requirements enabling us to effectively use our resources. Partnering with other utilities innovatively is only going to become more important in the future as we deal with the stresses of our industry.”

Paducah Power has other agreements to provide power to other municipalities. PPS is the majority owner of the Kentucky Municipal Power Agency.