The history of Henderson Municipal Power & Light begins at the turn of the century. Henderson was the first city in western Kentucky to own its power generating plant, and the first electric streetlights in Henderson were lit on August 15, 1896. With the illumination of the town by these 154 street lights, the next step for the city was to investigate furnishing private consumers with electricity. In 1899, the city began to supply merchants with arc lamps.

By 1950, increasing demand for electricity led the city to construct the Station One power plant during the years of 1950 and 1951. Two diesel generators were moved to the new plant to join a pair of 5,000kW coal-fired units. Within four years, the city had to expand and add a 10,000kW unit. In 1965, a 26,000kW unit was installed. By 1969 the city was running out of capacity, and in 1973, the Station Two power plant went into commercial operation with an installed capacity of 350,000kW.

The Federal Clean Air Act Amendments of 1990 affected HMP&L's Station Two power plant. A $42 million installation of flue gas desulfurization equipment (scrubbers) to reduce sulfur dioxide emissions was accomplished in 1995 without borrowing any money. Low NOx burners to reduce nitrous oxide emissions were installed at the plant in 1996, also without borrowing money. The Station One power plant debt was retired in 1995 and the final bond payment on Station Two is expected to be made in 2003. HMP&L completed construction of its seventh substation in 1996, continuing its long standing policy of improvements and upgrades to the electric system.

HMP&L charges its consumers an average of less than 3.4 cents per kilowatt hour. Henderson's residents enjoy some of the lowest rates in the nation. Henderson is one of only two cities in Kentucky that owns its own power plant, and has had only one rate increase since 1980. HMP&L stands ready to continue this tradition of economical and reliable service well into the next century.