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Kentucky Power Economic Growth Grants (K-PEGG)

Providing Support to Our Local Communities

We have a long history of collaboration and support for local, regional and state economic development. The Kentucky Power Economic Growth Grants (K-PEGG) supports and delivers significant new investment in economic development programs in eastern Kentucky.

The K-PEGG program provides resources for attracting new businesses, helping existing business customers expand, and assisting with developing new business and industrial real estate product, and economic development educational opportunities. It’s available to businesses operating in our 20-county service area.

Our Economic Development Team will partner with city, county and regional economic development organizations in our service area. We'll evaluate and recommend the funding levels for eligible projects. All financial awards made through our economic development programs will be made at the discretion of our Economic Development Team and senior leadership.

Eligibility

An eligible organization must be a nonprofit entity, such as a city or county economic development organization, or a regional economic development organization. The organization must be in our service area.

Use of Funds

Requests for K-PEGG funds must meet specific program requirements. The total planned giving for all awarded projects for any given year will not exceed the amount collected from non-residential customers through the Kentucky Economic Development Surcharge (KEDS) and matched by stockholders. This will be about $720,000 annually. We reserve the right to adjust potential grant awards based on competitive requests, appropriateness of requests, fund availability, and other criteria established by us.

The funds must be used for such programs or projects as:

Economic Development Education

K-PEGG funds can be used to provide educational opportunities for our local economic development practitioners in an effort to raise the bar of performance for our communities and partners who are focused on economic development.

Sites and Buildings – Product Improvement

K-PEGG funds may be used for industrial/ business park feasibility studies, master plans for industrial shell buildings or business parks, environmental studies or cultural studies for site development, other studies specifically related to product development, or infrastructure improvements for a site.

Marketing and Promotion

K-PEGG funds may be used to develop collaborative marketing and promotional strategies, including targeting studies, marketing materials/brochures, website development, technology and software upgrades for marketing, attracting new industry programs, conducting special studies and research projects, and programs to encourage regional development.

Professional Consulting Projects

K-PEGG funds can be used to hire economic development and site consultants to complete special projects related to their efforts. Potential projects could include: product improvement analysis, product identification analysis, product marketing programs, or target industry analysis.

Application

K-PEGG grant projects can be requested through our application process at any time as the program funds are available. We reserve the right to adjust potential grant awards based on competitive requests, appropriateness of requests, fund availability and other established criteria. Grant funds will be awarded at the discretion of our leadership until funds have been exhausted.

You can fill out the application online and upload additional documentation, or download the application and email the completed application and additional documents to kpegg@aep.com.


Please use the form below to apply on-line for the Kentucky Power Economic Growth Grant.

Applications must meet program guidelines and receive final approval from us:

  • All K-PEGG applications must be submitted electronically in the provided format to Bob Shurtleff at kpegg@aep.com. Please scan supporting documentation and cover letter and include with your application.
  • The K-PEGG program will not have any deadlines for request. The program is designed to be flexible in an effort to meet any potential economic development needs year round, as deemed qualified by the K-PEGG review team. A request can be made at any time by completing this request form and by providing any necessary supplemental information.
  • Incomplete applications will not be returned for revision.
  • Requests for K-PEGG funds must meet specific program requirements. The total planned giving for all awarded projects for any given year will not exceed the amount collected and matched through the Kentucky Economic Development Surcharge (KEDS), this will be approximately $600,000 annually. Kentucky Power reserves the right to adjust potential grant awards based on competitive requests, appropriateness of requests, fund availability, and other criteria established by Kentucky Power.
  • Please upload any supporting material for your application at the bottom of the form. (Note: You can send multiple attachments by selecting multiple files when you 'Attach File(s)' below.)

Applicant

(Describe KY Power service territory that will benefit)
Previous recipients are required to complete the reporting requirement prior to application submission.

Anticipated Results

Estimated Project Schedule (if applicable)

Please upload any supporting material for your application. (Note: You can send multiple attachments by selecting multiple files after clicking 'Browse').

Economic Development Successes

We work diligently with our local, regional, and state partners to attract and develop central Appalachia as a leader in investment and job creation. The success of the Kentucky Power Economic Development Growth Grants (K-PEGG) and other grants illustrate the important partnerships the company is forming to bring businesses and jobs to our communities. In the last five years, we have invested nearly $6 million in economic development in eastern Kentucky, including water and sewer projects, broadband expansion, industrial site development and certification, workforce research, and other worthy endeavors.

KPEGG Grant Recipients:

The K-PEGG is funded through the Kentucky Economic Development Surcharge approved by the Kentucky Public Service Commission in 2015 and updated in 2017. For every $1 collected monthly from non-residential customers, company stockholders match the customer contributions dollar for dollar to generate nearly $800,000 annually for investment at the local and regional levels. The program is available in all 20 counties served by Kentucky Power.

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.

KEAP Grant Recipients

The KEAP program provided $1 million in economic development assistance to customers over five years in Boyd, Carter, Elliott, Lawrence, Johnson, Martin and Morgan counties. The program ended in 2018.

Lawrence County Economic Development

Grant Year: 2018

Amount: $101,350

Counties Served: Lawrence Project Description: Applicant requested funding for environmental and other related due diligence studies for site development for a new 85-acre Industrial park adjacent to our Big Sandy Power plant. Burgess & Niple provided a site analysis report stating the studies need to be conducted as part of the redevelopment to an industrial property. A feasibility study regarding the sewer treatment plan for the park is 95% complete.

Johnson County / Paintsville Chamber of Commerce

Grant Year: 2018

Amount: $19,500

Counties Served: Johnson

Funds were requested to purchase equipment of the East Kentucky Advanced Manufacturing Institute (eKAMI). The training institute is currently in place to bring the necessary skills that will help to recruit manufacturing industry to the region.

Southeast Kentucky Chamber of Commerce

Grant Year: 2018

Amount: $50,000

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

Applicant seeks funding to purchase additional equipment for a VF3SS machine located at American Metal Works LLC (AMW). This will allow AMW to participate in the competitive are of aerospace manufacturing. Aerospace parts require a unique identification number engraved upon it. AMW currently has to send parts to a 3rd party for engraving. This increases both the cost of the part and the time it takes to deliver the part to the customer. The equipment will allow AMW to engrave the parts in-house and allow them to stay competitive and will continue to support economic growth in region.

Ashland Alliance

Grant Year: 2018

Amount: $30,000

Counties Served: Boyd, Greenup

Funding requested to implement a robust Recruitment and Marketing Program. This request aligns with existing efforts in retention and expansion of business in the region. The funding will lead to the applicant having direct conversation with 50 companies looking for expansion and new locations. The funding will also allow for the branding of marketing material.

Eastern Kentucky Advanced Manufacturing Institute (eKAMI): $50,000

To refurbish its Paintsville facility into an education center. The institute will focus on re-training out-of-work coal miners in skills needed for advanced manufacturing.

Ashland Alliance: $17,500

For a project to seek build-ready certification at the East Park Industrial Site in the greater Ashland area.

One East Kentucky: $88,200

To assist One East Kentucky in jumpstarting the new location of Thoroughbred Aviation Maintenance’s new facility at the Big Sandy Regional Airport in Martin County.

Ashland Community and Technical College: $25,000

To assist in the purchase of equipment for its new fiber optics training program.

Paintsville-Johnson County Chamber of Commerce: $20,000

To allow the Chamber to support American Metal Works in obtaining ISO 9001 and AS9100 certifications. The designations will allow the company to better compete for military and aerospace industry contracts.

Gateway, FivCo and Big Sandy Area Development Districts: $3,300

To allow each district to send one representative to sit for the Certified Economic Developer exam as well as a test preparatory course.

Lawrence County Fiscal Court: $18,000

To assist in purchasing equipment for a first and only Teleworks hub in the county.

Ashland Alliance / Northeast Kentucky Regional Industrial Authority: $45,000

To provide funding for a project at the East Park Industrial Site in the greater Ashland area. The grant funded various improvements of an existing 110,000 square foot specification building at the park. Project included $5,000 in local matching funds.

Gateway, FivCo and Big Sandy Area Development Districts: $10,400

To allow each district to send one representative to the third year of training at the three-year Oklahoma University Economic Development Institute. The grant also funded attendance of additional staff to the Kentucky Institute of Economic Development basic course in Lexington.

City of Olive Hill: $25,000

To provide funding for the preliminary engineering services for surveying, measurements of existing wastewater treatment facilities and equipment as well as preliminary layout and design as part of a capital project to upgrade the city’s wastewater treatment facility.

FIVCO Area Development District: $4,000

To allow East Park Industrial Park to enhance their marketing including signage to on the property and additional marketing materials.

Louisa Chapter of the Southeast Kentucky Chamber: $92,750

To assist the Chamber in supporting Quality Metal Products of Louisa in purchasing new equipment that will allow the company to fabricate new products and increase their production by 18 to 24 percent. This project will add six new jobs at the facility.

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