Read our report on the East Kentucky Power Cooperative
Overview
This report by consultant Tom Sanzillo of TR Rose Associates was released in April 2009 by Kentuckians For The Commonwealth, Kentucky Environmental Foundation and the Cumberland Chapter of the Sierra Club.
The report documents the weak financial position of East Kentucky Power Cooperative and concludes that canceling a proposed coal-burning power plant is the best choice for the Cooperative and its ratepayers.
Key Findings
- The Cooperative’s priority to build new coal-burning power plants is misaligned with the direction of capital markets and national energy policy.
- EKPC’s current financial position is weak, and its decision to build Smith #1 is one of the main impediments to improving its credit status.
- EKPC’s financial statements and accounting practices warrant review.
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EKPC underestimates the cost of power from the Smith #1 plant.
- The justification for the Smith Plant is weak, and EKPC has acknowledged a recent drop in demand for electricity.
- Stopping the Smith #1 plant will avoid an additional price increase to ratepayers of at least 5% to recover the costs of building and operating the new plant.
- The Cooperative has options to reduce losses and recover some of the money it has already spent on Smith #1.
Stop Smith is a campaign to persuade East Kentucky Power Cooperative to invest in energy efficiency and renewable energy and cancel plans to build two proposed coal-burning power plants.