By: Amelia HollidayStaff Reporter
February 20, 2013
A story uploaded to hazard-herald.com, and printed in this week’s issue of The Hazard Herald, about a biomass bill sponsored by Sen. Brandon Smith apparently incorrectly reported that the bill would allow the Public Service Commission (PSC) to enter into 20-year contracts with biomass companies should they want to contract with the state.
According to Andrew Melnykovych, director of communications for the Kentucky Public Service Commission, the PSC does not, and would not with this legislation, enter into contracts with power providers.
“What the bill would do is allow a utility company to recover the cost of purchasing power from a biomass-fueled electric producer if, and only if, the PSC determines that the agreement between the producer and the utility company is fair, just, and reasonable,” Melnykovych explained. “The legislation does not specify the term of the agreement.”