Kentucky PSC Approves LG&E and KU’s $3 Billion Plan to Build New Gas Units at Major Customer Expense

LOUISVILLE, KY. - The Kentucky Public Service Commission has approved a previous agreement between Louisville Gas & Electric (LG&E), Kentucky Utilities (KU), and other parties - including the Kentucky Coal Association - to construct two new gas units and saddle customers with higher bills to pay for new expensive equipment at the old, polluting Ghent coal plant, a plant LG&E and KU themselves wanted to retire just two years ago. The plan will pass off $3 billion in costs to Kentucky families and small businesses already grappling with proposed bill increases.

The two new gas units, Brown 12 and Mill Creek 6, are expected to come online in 2030 and 2031 respectively. The new equipment at Ghent could keep the plant, already identified by the LG&E and KU in 2023 as a bad investment, on customer bills for years to come.

LG&E and KU initially submitted their Certificate of Public Convenience and Necessity (CPCN) request to approve the new construction to the PSC in February. The utilities used forecasted data center demand to justify the need for more fossil fuel power. However, this data center demand has yet to materialize in Kentucky.

The utilities' plans originally included a request to add battery storage at Cane Run Generating Station. Plans for the batteries were scrapped during negotiations for the stipulated agreement in July.

In response to the settlement, Elisa Owen, Kentucky's Beyond Coal Campaign Senior Organizer, issued the following statement.

"Today, the PSC abandoned its missionto ensure 'safe and reliable service at a reasonable price' for Kentucky. Instead, the PSC has rubber-stamped LG&E and KU's expensive and unnecessary plan to funnel Kentuckians' hard-earned money into coal and gas facilities that rake up our electricity bills and poison our air. It is egregious how LG&E and KU prioritize the needs of speculative data centers and their secretive Big Tech owners over those of Kentucky residents who cannot afford to both power their homes and feed their families."

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