Representatives from Dependable Power First Kentucky and America’s Power gathered in Owensboro on Thursday to share findings from a new report on electricity rates and to emphasize the need for maintaining a diverse and reliable energy mix to avoid future blackouts and rising costs.
The roundtable, held with members of the Owensboro-Daviess County community and local media, featured a presentation of the 2024 Kentucky Electricity Rate Analysis. The report shows Kentucky’s average retail electricity rate — 10.18 cents per kilowatt hour — is the lowest of any state east of the Mississippi River, nearly 22% below the national average.
According to speakers, that affordability is largely tied to Kentucky’s continued reliance on coal-fired generation and its regulated utility structure — both of which have helped shield ratepayers from the high capacity costs and market volatility experienced in other parts of the country.
The discussion began with remarks from Daviess County Judge/Executive Charlie Castlen, who reflected on past conservation efforts by Owensboro Municipal Utilities before it ceased producing its own power. Castlen expressed concern that Kentucky could see more grid instability if dispatchable generation sources continue to be retired without reliable replacements.
“By abandoning coal-fired plants before replacement energy is in place, we run the risk of having rolling blackouts or brownouts like our neighbors in California do, and they experience it all too frequently,” Castlen said.
The roundtable was organized by Dependable Power First Kentucky (DPK), a coalition launched in 2023 to advocate for policies aimed at ensuring grid reliability and energy affordability. The group includes business representatives, economic development officials, utilities, and other stakeholders.
Seth Schwartz, an energy market analyst with Energy Ventures Analysis, participated in the roundtable remotely and presented the rate study. He said Kentucky’s low-cost electricity has been a major driver of industrial and economic growth, but noted that share is shrinking as the portion of coal-fired power generation declines — from more than 90% a decade ago to roughly 65% today.
Schwartz cited Environmental Protection Agency regulations and coal plant retirements as key reasons for the shift, adding that further closures could accelerate cost increases unless mitigated by new capacity or regulatory relief.
The report also highlights that Kentucky never deregulated wholesale power generation — a decision that has helped keep prices stable. Schwartz said that in deregulated markets, utilities often purchase power at market rates rather than producing it themselves, which can lead to sudden spikes in cost during periods of high demand or capacity shortages.
Claude Bacon, President and CEO of the Greater Owensboro Economic Development Corporation, said local projects over the past year have benefited from having consistent access to utilities, but warned that continued growth hinges on energy availability.
“We’ve had one of the most successful years for economic development in our community’s history,” he said. “That only happened because the necessary infrastructure — including power — was already in place. If we lose that dependability, it puts future projects at risk.”
While the report and discussion acknowledged that renewable energy sources have an important role to play, speakers cautioned against a rapid transition away from traditional resources like coal and natural gas.
The coalition is encouraging business leaders, organizations, and community members to learn more about the issue. More information about the group and a copy of the report are available at dependablepowerky.com.
