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
1 DOW 18,040.37
+29.69 (0.16%)    
2 S&P 2,111.73
+4.34 (0.21%)    
3 NASDAQ 5,082.93
+12.90 (0.25%)    

Most Read This Week

May 27, 2015 7339

VIDEO: Sparks Fly Over Hanson Rezoning Issue

by Tammy Holloway, SurfKY News
May 30, 2015 6577

Study of Virus Attack on Cancer Sees Success

by Julie Heflin
May 28, 2015 6439

Four Charged with Burglary for Entering Elderly…

by SurfKY News
May 27, 2015 4185

Midnight Ride on Rabbit Ridge Ends in Jail

by SurfKY News
May 26, 2015 3965

Mandarin House Gearing Up to Open Soon

by Gary Gates, SurfKY News

Most Read This Month

May 15, 2015 11260

New Madisonville Business In Full Operation Soon

by Tammy Holloway, SurfKY News
May 23, 2015 8996

Missing 5-Year-Old Boy Found

by Doreen Dennis, SurfKY News

Stories Trending Now

May 31, 2015 1304

Hot Button Item Draws Hanson Crowd to Zoning,…

by Tammy Holloway, SurfKY News
May 30, 2015 1214

Rods for Relay Raises Funds for ACS Relay for Life

by Tammy Holloway, SurfKY News
May 31, 2015 1150

YMCA Summer Food Service Program

by Kelly Forbes
May 31, 2015 983

Hopkins District Court Fines Handed Down

by SurfKY News
May 31, 2015 953

Survivors, Caregivers, Supporters Gather for…

by Tammy Holloway, SurfKY News
June 01, 2015 838

Authorities Discover Meth Lab While Assisting…

by SurfKY News
May 31, 2015 716

Hopkins County Traffic Advisory

by Keith Todd
May 30, 2015 679

Whitfield Announces Congressional Art Contest…

by Ed Whitfield
June 01, 2015 664

Madisonville Police Arrest Reports Released -…

by SurfKY News
May 31, 2015 598

LG&E and KU Unveil New Outage Texting Option…

by LG&E and KU News