Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Fayette | Henderson | Lakes | McCracken | Warren | Webster

LG&E, KU Want to Put Natural Gas Facility in Muhlenberg on Hold

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

© Copyright 2014 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 by using one of the social media links below.

In Other News...

Owensboro Begins Year-Long, Long Range Planning

OWENSBORO, Ky. (7/30/14) — The Goodfellows Club of Owensboro hosted its 12th Annual Goodfellows Club/Luke Woodward… Read More

Happenings and Meetings - Daviess County

OWENSBORO, Ky. (7/29/14) — The following meetings and events are scheduled for the following week: Events and… Read More

Most Read This Week (Site-Wide)

July 28, 2014 3315

Madisonville Woman Arrested for Being a…

in Top Stories by Madisonville Police Department
July 30, 2014 2906

UPDATE: Waide Responds to Allegations of…

in Top Stories by Rita Dukes Smith, SurfKY News Director
July 28, 2014 2891

Madisonville Man Arrested for Endangering…

in Top Stories by Madisonville Police Department
July 30, 2014 2607

Three Arrested in Muhlenberg as Part of…

in Top Stories by GPD Officer Wes Miller
July 28, 2014 2448

Disagreement Over Killing Snake in House…

in Top Stories by Madisonville Police Department

Most Read Stories from Hopkins County

July 28, 2014 3315

Madisonville Woman Arrested for Being a…

in Top Stories by Madisonville Police Department
July 28, 2014 2891

Madisonville Man Arrested for Endangering…

in Top Stories by Madisonville Police Department
July 28, 2014 2448

Disagreement Over Killing Snake in House…

in Top Stories by Madisonville Police Department
July 28, 2014 1686

Two Injured in Vehicle Collision on…

in Top Stories by William Roundtree
July 28, 2014 1676

Madisonville Man Arrested for Assault,…

in Top Stories by Madisonville Police Department

Most Read Stories from Owensboro

July 28, 2014 1075

Zuberer Takes Over at Quarterback for…

in News by Steve LeMaster
July 28, 2014 953

Dont Miss Out on a Howl of a Good Time

in News by Brittni Bunn
July 28, 2014 827

Instant Admissions Day is Aug. 1, 2014

in News by Bernie Hale
July 29, 2014 657

Happenings and Meetings - Daviess County

in News by Owensboro-Daviess County Convention & Visitors Bureau
July 28, 2014 428

Prosecutors Mull Over Whether to Charge…

in Top Stories by Dennis Beard, SurfKY News

Most Read Stories from Muhlenberg County

July 30, 2014 2607

Three Arrested in Muhlenberg as Part of…

in Top Stories by GPD Officer Wes Miller
July 30, 2014 1945

UPDATE: Muhlenberg Man, Woman Arrested in…

in Top Stories by Sheriff Curtis McGehee
July 28, 2014 1339

Foot Pursuit Ends with Arrest

in Top Stories by Christopher Rogers
July 28, 2014 1243

Boys of Broad to Launch Video at Cinema 4

in Top Stories by Paul McRee, SurfKY News
July 29, 2014 1223

Muhlenberg District Court Fines Handed…

in Top Stories by Charles W. Riley II, SurfKY News

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 06social 21social 22social 04social 03