Posted on 2/2/14

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 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.

Weather Sponsored by

1 DOW 17,813.39
+1.20 (0.01%)    
2 S&P 2,088.87
-0.27 (-0.01%)    
3 NASDAQ 5,116.14
+13.33 (0.26%)    

Stock Report Sponsored by


Most Read This Week

November 20, 2015 9584

Dispatchers Overhear Drug Activity during…

by SurfKY News
November 24, 2015 9267

Distillery to Operate in Old Graham School…

by SurfKY News
November 21, 2015 8556

Injuries Result from Beulah Road Accident

by Doreen Dennis, SurfKY News
November 23, 2015 7287

Relative Charged with Murder, Arson in Deaths of…

by SurfKY News
November 24, 2015 4116

Ohio County Most Wanted - Top 10 - November 24

by SurfKY News

Most Read This Month

November 17, 2015 14844

Ohio County Most Wanted - Top 10 - November 17

by SurfKY News
November 18, 2015 14236

Runaway Teen Returns on His Own

by SurfKY News

Stories Trending Now

November 25, 2015 1431

Hopkins County Crime Stoppers Top Most Wanted -…

by SurfKY News
November 25, 2015 859

Students Serve to Learn Life Lesson

by Tammy Holloway, SurfKY News
November 25, 2015 818

Man Hospitalized after Early Morning Car Accident

by SurfKY News
November 25, 2015 721

Two Vehicle Collision Sends Four to Area Hospitals

by SurfKY News
November 25, 2015 687

Madisonville Police Reports Released

by SurfKY News
November 25, 2015 604

Hopkins County Sheriff's Reports Released

by SurfKY News
November 25, 2015 589

A.G. Conway Announces $256 Million Settlement…

by SurfKY News
November 25, 2015 528

Thanksgiving is Peak Day for Cooking Fires

by SurfKY News
November 25, 2015 395

Ky. Division of Forestry Firefighters on Standby…

by SurfKY News
November 25, 2015 366

Members of Congress Need to Spend More Time on…

by SurfKY News