Louisville Gas and Electric Company, Kentucky Utilities Company, and a number of intervening parties have reached a stipulation agreement that will support LG&E and KU’s ability to continue providing safe and dependable customer service while keeping up with Kentucky’s historically high economic development needs. The utilities are currently requesting new generation from the Kentucky Public Service Commission.
The agreement was filed today with the KPSC for approval.
On February 28, LG&E and KU, subsidiaries of PPL Corporation, requested permission from the Commission for a Certificate of Public Convenience and Necessity (CPCN) to install two new, highly efficient natural gas combined-cycle units, increase battery storage, and upgrade environmental technologies on Unit 2 at Ghent Generating Station. This request was made in response to the commonwealth’s unprecedented economic growth. Parties to the case have sent hundreds of requests for information on LG&E and KU’s generation investment plans, and both companies have answered them throughout the regulatory process.
The stipulation agreement supports:
- Construction of two 645-megawatt natural gas combined-cycle units as initially proposed. These modern generating units will use advanced technology, similar to Mill Creek 5 currently under construction at the company’s Mill Creek Generating Station in Jefferson County. LG&E and KU expect to have the first unit, Brown 12, available in 2030 and the second unit, Mill Creek 6, available in 2031.
- Installation, as initially proposed, of a selective catalytic reduction facility, available in 2028, to reduce nitrogen oxide (NOx) emissions for Ghent Unit 2.
- The companies agreeing to request to extend the operation of Mill Creek Unit 2, subject to environmental permitting, beyond its previously planned 2027 retirement date until Mill Creek 6 is in-service in 2031.
- LG&E and KU withdrawing the request to add battery storage at Cane Run, with the companies reserving the right to file a separate CPCN request tied to battery storage at a future date if necessary.
“Kentucky has a very open and transparent regulatory process that allows for customer input and representation, and we appreciate that this process enables thoughtful discussion, opportunities for public input and extensive reviews among the parties involved,” said John R. Crockett III, LG&E and KU President. “As Kentucky’s largest regulated utilities, we have an obligation to serve all customers and new economic development load in the lowest reasonable cost manner. This agreement reflects the importance of that role and the critical needs addressed in our long-term generation investment plans.”
Through their Integrated Resource Plan, LG&E and KU predicted record-breaking economic growth and the expansion of data centers last autumn. This projection is independent of any particular project and stays on track.
Southern Renewable Energy Association, Kentucky Coal Association, Inc., Kentucky Industrial Utility Customers, Inc., and the Attorney General of the Commonwealth of Kentucky came to a settlement agreement.
The same possibilities as usual are available to case parties who did not sign the stipulation agreement to continue taking part in the regulatory procedure. By November, the utilities’ CPCN request—which includes the stipulation agreement—should have a decision from the KPSC.
Part of the PPL Corporation (NYSE: PPL) family of businesses, Louisville Gas and Electric Company and Kentucky Utilities Company are regulated utilities that provide service to over 1.3 million customers and have been rated as some of the finest in the US for customer service. In Louisville and 16 neighboring counties, LG&E provides service to 335,000 natural gas and 436,000 electric consumers. KU provides services to 28,000 clients in five Virginia counties and 545,000 clients in 77 Kentucky counties.
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