Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

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...

TeleTech Hosting Hiring Events in Paducah

PADUCAH, Ky. (9/22/14) — TeleTech Holdings, Inc., a leading global provider of analytics-driven, technology-enabled… Read More

Hanson Celebrates Third Annual Lions Club BBQ Blast-Off

HANSON, Ky. (9/22/14) — Hanson celebrated the Third Annual Lions Club BBQ Blast-Off Friday, Sept. 19 and Saturday,… Read More

Most Read This Week (Site-Wide)

September 19, 2014 4606

Madisonville Man Among Three Arrested for…

in Top Stories by Muhlenberg Sheriff Curtis McGehee
September 20, 2014 3479

Large Cache of Drugs, Cash, Gun Seized;…

in Top Stories by MCSO PIO Alex Piper
September 17, 2014 3402

Wanted Man Leads Troopers on Chase…

in Top Stories by Trooper Stu Recke
September 18, 2014 3042

Hopkins County Grand Jury Indictments

in News by Karen McKnight
September 19, 2014 2827

Five Injured in Two-Vehicle Collision at…

in Top Stories by MPD Officer Russell Nichols

Most Read Stories from Hopkins County

September 17, 2014 3402

Wanted Man Leads Troopers on Chase…

in Top Stories by Trooper Stu Recke
September 19, 2014 2827

Five Injured in Two-Vehicle Collision at…

in Top Stories by MPD Officer Russell Nichols
September 18, 2014 1888

Manitou Man Charged with DUI

in Top Stories by Madisonville Police Department
September 18, 2014 1804

Vehicle Strikes CSX Train Cars at Crossing

in Top Stories by Trooper Stu Recke
September 19, 2014 1486

My Kentucky Roads - Twin Maples Farm in…

in Top Stories by Amber Averitt, SurfKY News

Most Read Stories from Owensboro

September 20, 2014 1060

Man Charged with Theft After KSP…

in Top Stories by Alexis McGee
September 19, 2014 868

STREET CLOSINGS FOR MONDAY, SEPTEMBER 22

in Top Stories by Abby Shelton
September 19, 2014 838

Police Searching for Hit-And-Run Driver

in Top Stories by Jennifer Smith, DCSO
September 18, 2014 679

Owensboro's Nathan Morris Has Worldwide…

in Top Stories by Paul McRee, SurfKY News
September 18, 2014 503

9-1-1 Phone Lines

in Top Stories by Michael Hathaway

Most Read Stories from Muhlenberg County

September 20, 2014 3479

Large Cache of Drugs, Cash, Gun Seized;…

in Top Stories by MCSO PIO Alex Piper
September 20, 2014 1598

Paradise NRA Banquet Promises Food, Fun,…

in Top Stories by Paul McRee, SurfKY News
September 22, 2014 976

Third Suspect Charged in Greenville Home…

in Top Stories by MCITF PIO Wes Miller
September 22, 2014 648

Hundreds Turn Out for Greenville Festival

in Top Stories by Charles W. Riley II, SurfKY News
September 22, 2014 578

Muhlenberg Bass Team Members Score…

in Top Stories by Paul McRee, 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)


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

social 03social 04social 22social 21social 06