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.

1 DOW 17,683.58
-46.53 (-0.26%)    
2 S&P 2,068.76
-8.02 (-0.39%)    
3 NASDAQ 4,991.94
-17.27 (-0.34%)    

Most Read This Week

July 02, 2015 15353

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News
July 02, 2015 7926

Police: Stand Off Suspect in Critical Condition

by Doreen Dennis, SurfKY News
June 29, 2015 4643

Accused Synthetic Marijuana Traffickers Appear in…

by Doreen Dennis, SurfKY News
July 03, 2015 3880

KMA Reminds Motorists of New Kentucky Red Light…

by David Holt
June 30, 2015 3652

Earlington Man Faces Multiple Charges after…

by SurfKY News

Most Read This Month

June 24, 2015 45819

Western Kentucky, Southern Indiana's Largest…

by Doreen Dennis, SurfKY News
July 02, 2015 15353

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News

Stories Trending Now

July 06, 2015 1984

Man Accused of Choking Girlfriend, Threatening to…

by SurfKY News
July 05, 2015 1644

Hopkins County Traffic Advisory

by Keith Todd
July 05, 2015 1573

More Dental Patients Using ER in Kentucky

by Al Cross
July 05, 2015 1302

4th Fest Ends with ‘a Bang’ of Music, Fireworks

by Tammy Holloway, SurfKY News
July 04, 2015 1069

Recycling Equals Fun During iRecycling Regatta

by Tammy Holloway, SurfKY News
July 06, 2015 909

Madisonville Police Arrest Reports Released -…

by SurfKY News
July 06, 2015 864

Driving on Suspended License, Alleged Fleeing…

by SurfKY News
July 05, 2015 836

Study: One Dose of HPV Vaccine Effective

by Melissa Patrick
July 05, 2015 810

Legislator's Log - Week of July 5, 2015

by Brent Yonts
July 05, 2015 796

July 4 Saturday on the Square Features Patriotic…

by Mike Groves, SurfKY News