Davis Motor Sales banner ad

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 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 This material may not be published, broadcast, or rewritten without permission.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.

springhour

In Other News...

KSP Post 16 Henderson Reports Numerous Weather Related Accidents

WESTERN KENTUCKY (3/4/15) ― Kentucky State Police Post 16 reports numerous accidents in its coverage area including… Read More

UPDATE - Inspire Ladies Conference Rescheduled

MADISONVILLE, Ky. (3/5/15) — The Inspire Ladies Conference with Sharon Jaynes at Victory Church has been rescheduled… Read More

Most Read This Week

March 02, 2015 9630

Madisonville Teen Faces Numerous Drug Charges

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
March 03, 2015 5871

Three Arrested during Traffic Stop

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
March 05, 2015 4575

State of Emergency Declared for Hopkins County

in Local (Hopkins) Top News by Leslie Curneal
March 05, 2015 4440

UPDATE: I-24 Open Between 50-45 MM

in Top News For All Sites Touching Hopkins by Keith Todd
March 03, 2015 4029

Sacramento Man Charged with Rape, Sodomy

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
March 02, 2015 3817

HCSO, MPD Join to Bust Alleged Drug Trafficking…

in Local (Hopkins) Top News by Hopkins County Sheriff's Office

Most Read This Month

February 12, 2015

UPDATE: Name of Pennyrile Fatality Officially…

in Top News For All Sites Touching Hopkins by Doreen Dennis, SurfKY News
February 16, 2015

UPDATE: State of Emergency Declared for Kentucky

in Local (Hopkins) Top News by Rita Dukes Smith, SurfKY News Director

Stories Trending Today

March 05, 2015 4575

State of Emergency Declared for Hopkins County

in Local (Hopkins) Top News by Leslie Curneal
March 05, 2015 4440

UPDATE: I-24 Open Between 50-45 MM

in Top News For All Sites Touching Hopkins by Keith Todd
March 05, 2015 2743

Deep Snowfall Stalls Western Kentucky

in Top News For All Sites by SurfKY News
March 05, 2015 2122

Muhlenberg Issues State of Emergency Under…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
March 05, 2015 1703

Dyno Nobel Makes $1,600 Donation to Want Not…

in Top News For All Sites Touching Hopkins by Tammy Holloway, SurfKY News
March 05, 2015 1513

Governor Declares State of Emergency

in Top News For All Sites by Office of the Governor
March 05, 2015 1305

KYDOT Believes as Many as 200 Vehicles Stuck on…

in General News For All Sites by Keith Todd
March 05, 2015 1255

UPDATE - Lady Mustangs Trample Lady Tigers in…

in Local (Muhlenberg) Top News by Steve LeMaster
March 04, 2015 1239

I-24 Traffic Backed Up From 46-65 MM Due to…

in Local (Lakes) Top News by Keith Todd
March 04, 2015 1218

Gov. Beshear Warns Kentuckians to Prepare for…

in General News For All Sites by Office of the Governor