USA, Kentucky, Owensboro: Owensboro Municipal Utilities is studying the possibility of developing a 545 MW natural gas-fired power plant at the former Elmer Smith Station site along the Ohio River.
OMU General Manager Tim Lyons updated the Owensboro Board of Commissioners on the proposal as the utility prepares to join the Midcontinent Independent System Operator market in 2027.
The project would be located on around 12 ha (30 acres) of the former coal-fired power station site. Green River East GenCo LLC has submitted a generator interconnection application for the proposed facility, which would be capable of producing about 545 MW of electricity.
Lyons said the project remains in the early stages and is not guaranteed to move forward. OMU has approved an option-to-lease agreement with Green River East GenCo, allowing the company to carry out surveys and technical studies.
OMU has also hired GDS Associates to conduct a generator interconnection study, expected to take at least six months. The study will assess the plant’s impact on OMU’s system and neighbouring grids, while ensuring compliance with federal reliability standards. Lyons said the developer, not OMU ratepayers, will cover the study costs.
Elmer Smith Station produced its final megawatt in May 2020, ending a long period of coal-fired generation at the site. At its peak, the plant generated 415 MW.
A new facility of this size would likely cost around $1 B to build. Lyons said OMU is not currently considering ownership because such an investment would create significant risk for customers.
Instead, OMU could explore options such as power purchase agreements or limited participation if the project advances.
Source: The Owensboro Times
