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

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 This material may not be published, broadcast, or rewritten without permission.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

In Other News...

Sheriff Explains Numerous Duties of Office, Future Plans

MADISONVILLE, Ky. (3/27/15) — Newly-elected Hopkins County Sheriff Matt Sanderson recently addressed the Madisonville… Read More

Hopkins Grand Jury Indictments Handed Down

MADISONVILLE, Ky. (3/27/15) — A Hopkins County Grand Jury recently handed down the following indictments. Joseph… Read More

Most Read This Week

March 25, 2015 5156

Fazoli's, Roses Coming to Madisonville

by Amber Averitt, SurfKY News
March 27, 2015 5075

Three Arrested during Execution of Search…

by Madisonville Police Department/Hopkins County Detention Center
March 24, 2015 4989

One Dies, Another Injured in Mortons Gap Traffic…

by Deputy Heath Owens
March 25, 2015 4917

Grand Jury Finds No Criminal Wrongdoing in Bean…

by Doreen Dennis, SurfKY News
March 24, 2015 4127

UPDATE: One Injured in Hopkinsville Road Accident

by Doreen Dennis, SurfKY News
March 25, 2015 3855

Madisonville Man's Living Room Leap Lands Him in…

by Madisonville Police Department / Hopkins County Detention Center

Most Read This Month

March 09, 2015 13113

Multi-Agency Drug Bust Results in $1 Million Meth…

by KSP DESI
March 02, 2015 11452

Madisonville Teen Faces Numerous Drug Charges

by Madisonville Police Department/Hopkins County Detention Center

Stories Trending Today

March 27, 2015 5075

Three Arrested during Execution of Search…

by Madisonville Police Department/Hopkins County Detention Center
March 27, 2015 2119

MPD Searching for Man Accused of Nearly Running…

by Madisonville Police Department
March 27, 2015 1762

Family Loses Possessions, Dog in Sugg Street Fire

by Doreen Dennis, SurfKY News
March 27, 2015 1281

Hopkins Grand Jury Indictments Handed Down

by Karen McKnight
March 27, 2015 1164

Rehabber Explains Her Mission; Efforts Filmed by…

by Ron Sanders
March 27, 2015 1040

Hopkins County Health Department Food Scores Thru…

by Barry Franklin
March 27, 2015 922

Madisonville Police Arrest Reports - March 27,…

by Madisonville Police Department
March 27, 2015 831

Work Continues on Madisonville's Downtown Plaza

by Rita Dukes Smith, SurfKY News Director
March 27, 2015 823

Sheriff Explains Numerous Duties of Office,…

by Ron Sanders
March 27, 2015 803

Utility Tax Petition Signatures Put Choice before…

by Charles W. Riley II, SurfKY News