Kentucky Power Economic Growth Grants (K-PEGG)

In an Order dated June 22, 2015 in Case No. 2014-00396, the Public Service Commission of Kentucky recognized the importance of the role of an area’s utility in economic development and approved Kentucky Power Company’s application to establish the Kentucky Power Economic Growth Grant (K-PEGG) program.

Since the K-PEGG program began in 2016, Kentucky Power has awarded $2,721,976 in K-PEGG funds through 52 grant applications for projects to enhance economic development programs and projects that promote the creation and retention of manufacturing and/or industrial investment and jobs. The K-PEGG program is specific to Kentucky Power’s twenty county service territory. Grant funding is awarded for use in the following categories: Economic Development Education, Sites and Buildings-Product Improvement; Marketing and Promotion; and Professional Consulting Projects.

The K-PEGG program allows Kentucky Power to work strategically with communities, government and economic development partners to facilitate business location and expansion in the Kentucky Power’s service territory. Together, we are building a stronger eastern Kentucky. If not for K-PEGG funding, many economic development opportunities in the region could be lost.

Kentucky Power received 15 grant applications in 2019. The Company issued 12 grants and denied three applications. $914,750 was awarded through the 2019 K-PEGG fund. The K-PEGG grants issued and denied during 2019 are described below.

One East Kentucky 2019-01

Date of Grant:2/1/2019

Amount: $50,000

Counties Served:Floyd, Johnson, Pike, Morgan, Magoffin, Letcher, Perry, Knott, Lawrence, and Martin.

Kentucky Power issued a K-PEGG grant to One East Kentucky in support of its efforts to recruit industry, develop marketing materials, support regional chambers of commerce, initiate regional economic development strategies, and enhance opportunities for industrial sites.

One East Kentucky used its K-PEGG grant award to participate in 60 meetings with target industries as well as to secure 13 industry site visits. These meetings and visits led to the announcement of 590 new jobs. One East Kentucky also used K-PEGG funds to implement five new strategies and secure 40 additional partners for the organization.

Shaping our Appalachian Region (SOAR) 2019-02

Date of Grant:03/12/2019

Amount: $25,000

Counties Served:Entire Kentucky Power Service Territory

Kentucky Power issued a K-PEGG grant to SOAR to help SOAR fulfill its mission of expanding job creation, enhancing regional opportunity, innovation, and identity, improving the quality of life, and supporting all those working to achieve these goals in Appalachian Kentucky. Like the grant issued in 2016, the funds provided by Kentucky Power allowed SOAR to cover a portion of its operational expenses, support regional projects, and develop an on-line community. SOAR is one of Kentucky Power’s key regional economic development partners.

With K-PEGG grant funds, SOAR enhanced its digital presence and reached over 540,000 people through its social media channels, websites, and newsletter/event distribution lists. The SOAR Summit in 2019 had over 1,300 people in attendance.

In addition, SOAR identified over 700 projected job openings through its healthcare workforce collaborative and initiated 69 referrals from small business and/or start-ups to resource partners.

SOAR also created the CO. STARTER program in 2019. CO. STARTERS is a nine-week, cohort-based program that equips aspiring entrepreneurs with the insights, relationships, and tools needed to turn business ideas into action and turn a passion into a sustainable and thriving endeavors. Twenty-two CO.STARTERS graduated in the first cohort in 2019.

One East Kentucky 2019-03

Date of Grant:03/12/2019

Amount: $30,000

Counties Served: Floyd, Johnson, Pike, Morgan, Magoffin, Letcher, Perry, Knott, Lawrence, and Martin.

Kentucky Power issued a K-PEGG grant to One East Kentucky to assist with:

Costs associated with the Project Lion facility build-out and design [$10,000].

Project Lion was an effort to recruit a manufacturer. As part of the Project Lion recruitment, K-PEGG grant funds were used to provide speculative building design and site build-out plans for the East Kentucky Business Park in Martin County. $2,000,000 in Abandoned Mine Land (AML) funds were also secured for the project. The company associated with Project Lion chose not to go forward with the project. One East Kentucky (OEK) used the plans created for Project Lion to shift the AML funding to the Pinnacle Park project for the East Kentucky Business Park. The Big Sandy Industrial Development Authority will construct the region’s first 200,000 square-foot Kentucky Certified Build-Ready Site as part of the Pinnacle Park project. The construction will make the East Kentucky Business Park the region’s most well rounded industrial park, offering a variety of real estate options.

Without the K-PEGG grant funding, One East Kentucky would not have been able to utilize the AML funds and an additional $1.3 million in other grants to market East Kentucky Business Park for the Pinnacle Park project based on the park’s existing assets and abundant utility capacity. Currently, One East Kentucky is marketing the park’s 45,000 square-foot speculative building, 55,000 square-foot finished building, and a 32,000 square-foot multi-use international attraction facility (the International Landing Zone).

Facilitate a multi-county elected official training session [$5,000]

One East Kentucky hosted a professional education and regionalism workshop to educate local elected officials on their role in economic development. Sixty-seven elected officials attended the training.

Recruitment of Project Core [$5,000]

K-PEGG grant funds were used for workforce and job training as well as funding assistance for state incentive application fees associated with Project Core. Project Core resulted in the May 2019 announcement by Dajcor Aluminum Ltd., a Canadian manufacturer of extruded and fabricated aluminum products, of 265 full-time jobs and the investment of nearly $19.6 million to locate its first US operation near Hazard. The Dajcor facility will be located in the Perry County Coalfields Industrial Park.

Print Advertising [$10,000]

One East Kentucky used K-PEGG grant funds to purchase national, multi-issue print advertisements for the OEK region in the Kentucky Economic Development Guide and Site Selection Magazine.

One East Kentucky 2019-04

Date of Grant:04/10/2019

Amount: $35,000

Counties Served:Floyd, Johnson, Pike, Morgan, Magoffin, Letcher, Perry, Knott, Lawrence, and Martin with an emphasis on Perry County.

Kentucky Power issued a K-PEGG grant to One East Kentucky (OEK) in connection with Project Core to host a regional tour/event designed to encourage further jobs and investment from Dajcor Aluminum and its suppliers.

Dajcor announced its plans for the Coalfields Industrial Park shortly following the event. OEK met with 14 individuals during the event, including company officials, local community partners, state and local government officials and a private site selection consultant.

Ashland Alliance 2019-05

Date of Grant:03/28/2019

Amount: $105,000

Counties Served:Boyd, Carter, Greenup, Lawrence and Elliott counties

Kentucky Power issued a K-PEGG grant to Ashland Alliance for site and master plan development for the expansion of Northeast Kentucky Development Authority, (EastPark). This funding will allow for the comprehensive evaluation of existing land and the master planning of assets for the development of sites needed within the next three to five years. K-PEGG grant funding also will be used to create a marketing plan for EastPark expansion.

Ashland Alliance used the K-PEGG grant award to leverage an additional $100,000 for site development of EastPark expansion.

Because of additional assets being identified for this expansion project, Ashland Alliance hosted a site visit for a potential $100 million investment and 500-job prospect. The project is on-going.

Kentucky Chamber of Commerce 2019-06

Date of Grant:04/21/2019

Amount: $6,000

Counties Served:Kentucky Power Service Territory

Kentucky Power issued a K-PEGG grant to the Kentucky Chamber of Commerce to fund six scholarships to the Kentucky Institute for Economic Development (KIED), Basic Class.

K-PEGG grant funding assisted Kentucky Power service territory chamber representatives and economic development practitioners to attend KIED for economic development training.

City of Pikeville 2019-08

Date of Grant:July 22, 2019

Amount: $75,000

Counties Served:Pike County

Kentucky Power issued a K-PEGG to the City of Pikeville to support initiatives to grow and promote the Kentucky Enterprise Industrial Park (KEIP) in Pikeville.

The plan will:

• Examine additional industrial site development
• Examine transportation needs related to the park and identify opportunities for upgrades
• Develop business retention and expansion strategies for KEIP including growth/expansion of existing area businesses and attraction of external firms
• Examine the regional fiber optic infrastructure and recommend initiatives to expand the network
• Support the development of marketing strategies for the KEIP including the creation of marketing materials
• Identify opportunities for promoting KEIP

K-PEGG grant funds were used to retain a consultant and six focus groups and open community meetings have been conducted. The project is on-going.

Johnson County Pathway to Economic Development (“JCPED”) (Year 2 of 2) 2019-09

Date of Grant:06/13/2019

Amount: $45,000

Counties Served: Kentucky Power 20-County Service Territory

Kentucky Power issued a K-PEGG grant to Johnson County Pathway to Economic Development. This is the second grant and complements the grant funded last year. The program will be self-funding going forward.

K-PEGG grant funds were used to equip students in Johnson County schools with resources, such as computers, and to develop economic development classes. The classes will help prepare students for careers and certification in economic development.

In 2019, Johnson County Schools shared its model for JCPED with its partners in Kentucky Valley Educational Cooperative (KVEC). KVEC contains schools in Breathitt, Floyd, Johnson, Knott, Letcher, Magoffin, Owsley, Perry and Pike counties in the Kentucky Power Service territory.

JCPED and KVEC are working with 27 additional state educational departments, seven economic development agencies, seven federal, state and local government representatives, and a host of educators to replicate the JCPED model in other school districts in Kentucky Power’s service territory.

KVEC and Johnson County Schools are in the process of applying for an Appalachian Regional Commission (ARC) Partnership for Opportunity and Workforce and Economic Revitalization (POWER) grant to sustain and expand the JCPED program.

Ashland Alliance 2019-10

Date of Grant:06/13/2019

Amount: $46,250

Counties Served: Kentucky Power 20-County Service Territory

Kentucky Power issued a K-PEGG grant to Ashland Alliance for direct marketing of the region in partnership with One East Kentucky. The Ashland Alliance and One East Kentucky highlighted the regional workforce and competitive advantages of the region with the Kentucky Cabinet for Economic Development.

K-PEGG funding supported Ashland Alliance’s direct, targeted marketing to new, expanding and relocating companies at select trade shows with One East Kentucky and the Kentucky Cabinet for Economic Development.

Ashland Alliance contracted with a lead generation company to schedule 20 C-level (the executive level of a corporation) meetings with medium to large aerospace companies looking to expand or relocate. The contract put Ashland Alliance in contact with 30 companies who had an interest in learning more about the opportunities in the region.

K-PEGG funds also assisted Ashland Alliance to meet with one international leader in metal manufacturing equipment to discuss placing a national training center in Northeast Kentucky.

Perry County Fiscal Court 2019-12

Date of Grant:07/24/2019

Amount: $300,000

Counties Served:Perry County and surrounding 8-county region

Kentucky Power issued a K-PEGG grant to Perry County Fiscal Court to purchase and make necessary improvements to a formerly occupied manufacturing facility as an incentive for Dajcor Aluminum to locate in Perry County. Perry County will be contributing an estimated $700,000 toward this project and required assistance from K-PEGG to fully fund the improvements.

The Dajcor Aluminum project was announced in May 2019.

Perry County Fiscal Court 2019-13

Date of Grant:08/20/2019

Amount: $175,000

Counties Served:Perry and surrounding counties

Kentucky Power issued a K-PEGG grant to Perry County Fiscal Court to complete Phase III (equipment and telecommunication) of a facility for a nursing school to address the shortage of nurses in southeastern Kentucky.

With the completion of the project, the Galen School of Nursing doubled the capacity of its program (40 to 80 students). The expansion of the Galen School of Nursing in Perry County addressed the need to fill 335 open nursing positions within a 50-mile radius of Hazard.

City of Ashland 2019-14

Date of Grant:10/8/2019

Amount: $22,500

Counties Served:Boyd, Greenup, Carter, Lawrence

Kentucky Power issued a K-PEGG grant to the City of Ashland to host Roger Brooks International, a consulting company specializing in downtown redevelopment planning for small cities, for an economic development education conference. It also was to fund an assessment of the community with a detailed report of improvements needed. The information will be used in developing the Comprehensive Plan update for The City of Ashland.

K-PEGG grant funds also were used by the City of Ashland to facilitate community economic development education provided by Roger Brooks International. One hundred fifty people attended public forum. Meetings were held between key area stakeholders and professionals with Mr. Brooks to create an action plan with 65 recommended items for downtown redevelopment. The Destination Ashland Team was formed to facilitate the 2-year plan.

Shaping Our Appalachian Region

Date of Grant: 6/22/18

Amount: $25,000

Counties Served: Our entire service territory

We issued a grant to SOAR to help further local economic development strategies and assist in long term growth of the area. This grant will allow SOAR to assist with a guideline, implementation plan as well funding support to drive projects forward in local communities.

Appalachian Industrial Authority

Date of Grant: 6/25/18

Amount: $35,000

Counties Served: Letcher County

We issued a grant to the Appalachian Industrial Authority to directly impact infrastructure and support new businesses. This will retain jobs as well as create new ones. This grant can lead to $5,000,000 investment.

Pike County Fiscal Court

Date of Grant:

Amount: $25,500

Counties Served: Pike County

This is a request for funds to be used to hire a consult to devise implementation plan for the creation of county-wide broadband. The county plans to expand on the success of the Teleworks hub and increase jobs in remote areas. Applicants will obtain matching funds with grants from Economic Development Administration currently being processed. The total estimated cost of the project is $85,000.

One East Kentucky

Date of Grant:

Amount: $50,000

Counties Served: Pike, Floyd, Johnson, Martin, Lawrence, Morgan, Magoffin

One East Kentucky is a 501(c)3 non-profit organization whose mission is to work toward diversifying the economy of the Coal Fields of East Kentucky through recruitment of industry. This organization is entirely funded by private investment, such as those sought in this grant application. This investment will be used to recruit industry, develop marketing materials, support regional chambers of commerce, initiate regional economic development strategies, and enhance opportunities for industrial sites.

City of Wayland

Date of Grant: March

Amount: $19,500

Counties Served: Floyd County

Complete feasibility study to identify the need to establish and maintain a high speed, affordable wireless broadband service for the City of Wayland. Utilizing data from the Eastern Telephone & Technology model developed for the City of Pikeville Wireless Broadband Project, we'll need an estimated $150,000 to bring a similar service to Wayland. High speed broadband service brings opportunities of economic growth for existing businesses, as well as options for entrepreneurs and residents wishing to work from home. We have contacted EKCEP about our project and the possibility of a “Teleworks Hub” serving Wayland and the surrounding area.

Aerospace Alliance of East Kentucky

Date of Grant: March

Amount: $50,000

Counties Served: Greenup, Boyd, Floyd, Johnson, Knott, Lawrence, Letcher, Magoffin, Martin, Perry, and Pike.

This was request for funds to be used for direct marketing support for attending the MRO Americas Conference and Tradeshow. The MRO Americas conference is the premier event for the commercial air transport maintenance repair and overhaul industry. The applicant hopes to build on past success and promote eastern Kentucky to over 850 aerospace companies that will attend the conference.

One East Kentucky Corporation – International Landing Zone

Date of Grant: 2/28/18

Amount: $55,375

Counties Served: Floyd, Johnson, Knott, Lawrence, Letcher, Magoffin, Martin, Perry, and Pike.

This was request for funds to be used to conduct a feasibility study by a non-biased third party. The study would serve as a Foreign Direct Investment industrial incubator. One East Kentucky meets with many foreign companies that are looking to enter the U.S. market. The foreign companies are initially seeking smaller facilities between 10,000 to 30,000 square feet. The applicant believes the re-use of existing large industrial buildings could provide necessary space for foreign investors.

Ashland Alliance

Date of Grant: 5/22/2018

Amount: $72,000.00

Counties Served: Floyd, Johnson, Knott, Lawrence, Letcher, Magoffin, Martin, Perry, and Pike.

This grant request is $72,000 for East Kentucky Economic Development Gap analysis, site meetings with clients that have expressed interest in an expansion of manufacturing facilities in NE Kentucky, and targeted recruitment opportunities that have opened up for Ashland Alliance and One East Kentucky.

Hazard Perry county Economic Development Alliance

Date of Grant: 6/25/18

Amount: $25,000.00

Counties Served: Perry, Harlan, Breathitt, Leslie and Knot

HPCEDA was created to work in unison with One East Kentucky to market the area, recruit new industry, help existing industry and local businesses, whether existing or startup, to enhance the economy in this coal-distressed area of eastern Kentucky. The primary focus for the alliance is in Hazard-Perry County but in recruiting and marketing the regional industrial park, Coal Field Regional Industrial Park, the 5 counties of Perry, Harlan, Breathitt, Leslie and Knott all benefit from industries and jobs created.

KY Association of Economic Development (KAED)

Date of Grant: 7/20/18

Amount: $20,000.00 x 3

Counties Served: All of Kentucky

The Kentucky Cabinet for Economic Development (CED) has pledged that if KAED raises money to hire a consultant, CED will provide $9 million of funding, spread over a three-year period, for the actual site/building investment.

One East Kentucky (OEK)

Date of Grant: 8/28/18

Amount: $40,000.00

Counties Served: Floyd, Knott, Johnson, Lawrence, Letcher, Magoffin, Martin, Perry and Pike

One East Kentucky's Project Activity has increased significantly. They wish to implement a CRM system to manage projects, follow-up and deliver reporting to our board, investors and our Power Economic Development representatives. The system will allow for better and more consistent follow-up, leading to tangible results of new jobs and facility locations

Big Sandy Regional Airport Runway Feasibility study

Date of Grant: 11/1 /18

Amount: $64,481.00

Counties Served: Floyd, Knott, Johnson, Lawrence, Letcher, Magoffin, Martin, Perry and Pike

The Big Sandy Regional Airport Board requests funding to conduct a feasibility study to include the construction of a 10,000 ft. runway. This project is vital to meeting the explicit needs of Kentucky’s growing aerospace industry and for the future success of many business incentive initiatives and industry recruitment efforts for east Kentucky and the state of Kentucky.

Johnson Co Pathway to Economic Development - 1 Year $45,000

Date of Grant: 11/1 /18

Amount: $45,000

Counties Served: Floyd, Knott, Johnson, Lawrence, Letcher, Magoffin, Martin, Perry and Pike

Funds requested will be used for equipping the students with the essential educational resources such as computers, resource materials & manual creation as well. Additional funds will be utilized for professional services and training for students from outside the education spectrum (KIED, Speakers, conferences and seminars).

One East Kentucky: $50,000

The grant supports One East Kentucky’s budget for the 2017-2018 budget year. The grant was the second of a five-year commitment to the new organization which is charged with attracting primary jobs and industry to eastern Kentucky.

Shaping Our Appalachian Region, Inc. (“SOAR”): $25,000

The grant to SOAR was assist in fulfilling the organization its mission of expanding job creation, enhancing regional opportunity, innovation, and identity, improving the quality of life, and supporting all those working to achieve these goals in Appalachian Kentucky. The grant was the second of a three-year commitment.

Hazard-Perry County Economic Development Alliance: $25,000

The funds were used to create a strategic plan and provide budgeting support for the organization whose mission is to attract, develop, and expand a diversified business base in the counties. The grant was the first of a three-year commitment to the new organization which is charged with ensuring Perry County is primed for job attraction and industry investment.

Southeast Kentucky Economic Development Corporation: $60,000

The grant to the Southeast Kentucky Economic Development Corporation provided funds necessary to assist four companies in the Company’s service territory obtain quality control certifications necessary to compete for subcontracting work to major military and government contractors.

Pike County Fiscal Court: $18,700

The grants to the Pike County Fiscal Court provided funds necessary to market the activities at the Pike County Teleworks Hub including job training and placement services.

One East Kentucky: $10,000

One East Kentucky is one of our key regional economic development partners. These funds were used to help cover costs incurred to meet with potential new employers, necessary travel, attend economic development conferences, and market the region.

One East Kentucky: $50,000

The grant was to support One East Kentucky’s budget for the 2016-2017 budget year. The grant was the first of a five-year commitment to the new organization, which is charged with attracting primary jobs and industry to eastern Kentucky.

Hazard-Perry County Economic Development Alliance: $25,000

The funds were used to create a strategic plan and provide budgeting support for the organization whose mission is to attract, develop, and expand a diversified business base in the counties. The grant was the first of a three-year commitment to the new organization which is charged with ensuring Perry County is primed for job attraction and industry investment.

City of Hazard: $56,000

The grant funds were issued to the City of Hazard to fund improvements to the sanitary sewer system that serves the Coalfields Industrial Park. Increasing the sewer capacity to 260,000 gallons per day at the Coalfields Industrial Park makes that site more attractive to businesses looking to relocate to the area.

Shaping Our Appalachian Region, Inc. (“SOAR”): $25,000

The grant to SOAR was assist in fulfilling the organization its mission of expanding job creation, enhancing regional opportunity, innovation, and identity, improving the quality of life, and supporting all those working to achieve these goals in Appalachian Kentucky. The grant was the first of a three-year commitment.

City of Pikeville: $75,000

The grant to the City of Pikeville provided the City with the funding necessary to hire engineers to design the “last mile” portion of the broadband infrastructure provided through the KentuckyWired project. The City’s project provided the engineering design necessary to extend broadband service from backbone to individual customers and businesses. The access to high-quality broadband service will help the City of Pikeville attract new business to the area.

One East Kentucky: $37,500

The grant to One East Kentucky allowed for the completion of an Aerospace Assessment and Marketing Plan for the region. As a result of the assessment and marketing plan, communities served by One East Kentucky received the AEROready designation. This designation helps One East Kentucky give assurances to private aerospace and aviation companies that an independent firm has verified that the workforce and assets of the region can support their facilities.

Big Sandy Regional Industrial Development Authority (“BSRIDA”): $100,000

The grant to BSRIDA provided the final funding necessary to purchase Logan Corporation’s facility in Martin County. Logan Corporation sought to sell the property so that it would be able to purchase a larger facility in Magoffin County to expand its business. The facility in Martin County was insufficiently sized to support Logan’s operations as it transitioned from manufacturing mining equipment to dump truck beds. As a result, none of the 35 jobs at Logan’s facility will be lost from the region and Logan will eventually create 80 jobs at its Magoffin County facility. In addition, the BSRIDA now owns an industrial facility it can market to potential new businesses.

Big Sandy Community and Technical College (“BSCTC”): $75,000

The grant to BSTSC supported the purchase of equipment for the college’s new Advanced Technology Center at its Pikeville campus. This equipment helps students in BSCTC’s Fiber Optics Technician training program develop the skills necessary to serve as certified technicians for the new broadband infrastructure to be installed in the region through the KentuckyWired project.

Ashland Alliance: $84,000

The grant to Ashland Alliance was for two projects: (1) to obtain an AEROready certification for Greenup and Boyd Counties and (2) to hire an outside consultant to assist with the region’s marketing and branding efforts. As a result of the funds provided through the K-PEGG grant, Ashland Alliance obtained the AEROready certification. This designation helps Ashland Alliance give assurances to private aerospace and aviation companies that an independent firm has verified that the workforce and assets of the region can support their facilities. Additionally, Ashland Alliance obtained a marketing and branding plan that will assist Ashland Alliance market the region to interested companies.

Floyd County Fiscal Court: $100,000

The grant to the Floyd County Fiscal Court provided bridge funding for pre-construction project development activities including site evaluation and engineering for the RCC Big Shoal, LLC gas-to-liquids project. The facility will be located on a reclaimed coal mine and will provide the equivalent of 500-600 jobs during construction. Once complete, the project is anticipated to result in 50 to 75 full-time jobs.

Ashland Alliance: $15,000

The grant to the Ashland Alliance offset a portion of the cost of upgrading an existing natural gas line at the Wurtland Riverport Industrial Park. The natural gas line upgrade was necessary to attract Steel Ventures, a West Virginia based company, to construct a steel galvanizing and distribution facility at the industrial park. Steel Venture’s new facility will eventually employ 65 personnel.