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AES and Meta Announce PPAs to Provide 650 MW of Solar Capacity for Data Centers

LCG, May 22, 2025--The AES Corporation (AES) yesterday announced that it has entered into two, long-term Power Purchase Agreements (PPA) to support Meta's data centers with 650 MW of solar capacity from two AES projects that will be starting operation in the Southwest Power Pool (SPP). AES expects these two solar projects will provide economic benefits to communities in Texas and Kansas, including hundreds of new construction jobs and contributing millions in long-term tax revenue.

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TVA Submits First Construction Permit Application for SMR at Clinch River Site

LCG, May 21, 2025--The Tennessee Valley Authority (TVA) announced yesterday that it is the first utility in the U.S. to submit a construction permit application (CPA) for the GE Vernova Hitachi Nuclear Energy (GVH) small modular reactor (SMR) BWRX-300 technology to the U.S. Nuclear Regulatory Commission (NRC). The application is TVA's next step in pursuing an SMR at its Clinch River site, near Oak Ridge, Tennessee. Preliminary SMR site preparation could begin as soon as 2026.

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Industry News

Kentucky Power Withdraws Request to Retrofit Big Sandy

LCG, May 31, 2012--American Electric Power's subsidiary, Kentucky Power, asked to withdraw its request to invest $940 million in environmental controls on its coal-fired Big Sandy power plant. The Kentucky Public Service Commission was already scheduled to issue its decision to permit the controls by Monday.

Kentucky Power, like other owners of coal-fired power plants, is evaluating costly compliance options in response to growing federal regulations, such as the utility mercury and air toxics standards (MATS), driven by the United States Environmental Protection Agency (EPA). Uncertainty on near-term emission control project costs, plus future incremental costs to comply with new regulations that may arise, makes it more and more attractive to retire coal-fired plants and invest in new plants fueled with low-cost natural gas.

The Big Sandy plant was commissioned in 1963 and includes two units with a combined electric generating capacity of 1,078 MW. In March, Kentucky Power requested to install a scrubber on the 800-MW unit to reduce emissions and to retire the smaller, 278-MW unit. Kentucky Power stated the reason to withdraw the request was "the ever-changing energy landscape" and that alternative power supplies could be purchased to replace the energy that would otherwise be generated from Big Sandy. Big Sandy is expected to continue operations prior to the EPA compliance deadlines, which will arrive in the next couple years.

According to the PSC, the investment in emission controls for Big Sandy was estimated to have raised a residential customer's monthly electric bill by about $31, or 30 percent, beginning in 2016.
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