The company is planning to enter into a 20-year biomass supply agreement with ecoPower procuring energy output from the latter’s 55MW plant.

The operating unit of American Electric Power, Kentucky Power has urged the Kentucky Public Service Commission to declare the final decision by 9 September 2013.

The application is said to be in line with government’s strategic energy plan.

ecoPower has planned to construct a biomass facility to produce electricity from materials including sawdust, bark, wood chips, tip wood and low-quality logs, and it is located in Perry County.

The company expects the plant to be operational by 2017.