Owensboro Municipal Utilities to move into MISO, signs transitional contracts with Big Rivers and NextEra

Owensboro Municipal Utilities officials told the Owensboro City Commission that the utility will migrate its power supply from the LG&E and KU control area into the Midcontinent Independent System Operator (MISO) market, with a transition beginning in early 2027 and a long-term supply contract with NextEra Energy starting June 1, 2027.

"We are in the process of making some significant changes to the way we provide power to the city here in about 2 years," Tim Lyons, general manager of Owensboro Municipal Utilities, said during the presentation. Lyons said OMU's contract with Big Rivers Electric expires Dec. 31, 2026, and that OMU expects to be a MISO market participant effective March 1, 2027, with a short-term Big Rivers supply contract running Jan. 127May 31, 2027 to assist the migration.

Lyons said OMU conducted an integrated resource planning process beginning in 2022 and issued a request for proposals in 2023 seeking capacity and energy options, including combined-cycle natural gas, and examined economics, risk and flexibility. "Throughout the evaluation process ... it was apparent that ... it would be beneficial for Owensboro Municipal to move from the LG and E system to the MISO…