ku company logo 300MUHLENBERG COUNTY, Ky. (4/30/14) — Nine municipalities across the state are considering the termination of their contracts with Kentucky Utilities if an agreement cannot be reached with KU.

KU and LG&E have asked the Kentucky Public Service Commission for a hold on its case concerning the utility's proposal for a natural gas, combined-cycle generating facility in Muhlenberg.

That case also includes a 10-megawatt solar photovoltaic facility in Mercer County. The other eight municipalities negotiating their contracts include Providence, the Frankfort Electric Power and Water Plant Board, the cities of Barbourville, Bardwell, Berea, Corbin, Falmouth and Paris.

The contract negotiation is part of a five-year cycle, according to a KU/LG&E spokesperson. The municipalities' negotiations have nothing to do with building of the proposed plants but rather rate negotiations. KU/LG&E have asked the PSC for a 90-day abeyance on the case until the companies have a chance to meet with the municipalities and discern whether the contracts will be renewed. That determination will have an effect on whether the projects will continue.

The municipalities have sent letters of termination effective 2019 as part of their agreements to provide sufficient notification.

In a press release, David Sinclair, vice president of Energy Supply and Analysis, said the need for the additional generation facilities was based on energy forecasts through 2035.

“We have been long-term partners with our municipal customers, providing them some of the lowest-cost energy in the country,” stated Sinclair. “We extended an offer to continue discussions and remain hopeful that we can come to a mutually acceptable resolution. However, if they choose to move forward with the termination of their contracts and find alternative sources of energy, that is their prerogative, and we must continue to provide the lowest-cost energy to our remaining customers.”

The potential loss of the nine municipal customers does not impact service to LG&E and KU's remaining 1.2 million customers since KU simply supplies electricity to the municipal customers, who in turn provide service to their customers; but it may impact the cost to serve these retail customers in the future, the press release stated.

Rita Dukes Smith
SurfKY News Director

e-max.it: your social media marketing partner

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

Posted on 2/2/14
3/13 - 16
1 DOW 16,643.01
-11.76 (-0.07%)    
2 S&P 1,988.87
+1.21 (0.06%)    
3 NASDAQ 4,828.33
+15.62 (0.32%)    
3/13 - 16

Most Read This Week

August 24, 2015 10909

Teen Reports Slasher Attempted to Attack Him on…

by Doreen Dennis, SurfKY News
August 24, 2015 6078

Alleged Burglar Calls 911 to Report Fire

by SurfKY News
August 24, 2015 5009

UPDATE: Four Dead, Two Survive Boating Accident

by SurfKY News
August 27, 2015 4534

All is Well after MNHHS Lockdown

by Doreen Dennis, SurfKY News
August 24, 2015 4141

MPD Coducting Sobriety Checkpoints

by SurfKY News

Most Read This Month

August 06, 2015 15783

Muhlenberg Woman Reportedly Suffers Violent…

by SurfKY News
August 24, 2015 10909

Teen Reports Slasher Attempted to Attack Him on…

by Doreen Dennis, SurfKY News

Stories Trending Now

August 28, 2015 1451

Two Webster County Residents Injured in Hopkins…

by Doreen Dennis, SurfKY News
August 28, 2015 1286

Hopkins County Health Department Food Scores Thru…

by SurfKY News
August 28, 2015 1091

Madisonville Police Arrest Reports Released -…

by SurfKY News
August 29, 2015 940

All Occasions Formals to Host Celebration to…

by Rita Dukes Smith, SurfKY News Director
August 28, 2015 889

Rep. Montell Proposes Bill to Stop Sweeping of…

by SurfKY News
August 29, 2015 817

UK Part of First Study on Marijuana Compound…

by SurfKY News
August 29, 2015 809

Happenings, Meetings Listed for Following Week

by Tammy Holloway, SurfKY News
August 28, 2015 681

Kentucky High School Football Schedule

by Steve LeMaster
August 28, 2015 667

Rep. Gooch, Others Argue against Burden Caused by…

by SurfKY News
August 28, 2015 646

TVA Seeks Input on Study for Closing Coal Ash…

by SurfKY News