A Path to Clean Energy: Cross-Subsidization Concerns From Local Solar Development in Frankfort, Kentucky That Can Apply to Other Communities

Municipal electricity utilities and communities with public power are increasingly interested in the opportunities afforded by locally-sited solar projects. Understanding the allocation of costs and benefits of a solar project across affected entities and stakeholders such as customer types can be critical for community buy-in. This case study looked specifically at an analysis done for the City of Frankfort and how plans to meet 100% of city government electricity loads with renewable energy by 2023 could affect an all requirements contract the city's municipal utility has with a regional electricity provider. While the results are specific to Frankfort and the electricity contracts in place at the time of the study, it is an example of how the question of cross-subsidization can be addressed using a quantitative study, with the goal of increasing transparency and buy-in across multiple stakeholders.