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 This material may not be published, broadcast, or rewritten without permission.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

Senior Volunteers File Job Corps Student Tax Returns

GREENVILLE, Ky. (4/17/15) — The Retired Senior Volunteers of Muhlenberg County visited the Muhlenberg Job Corps Center… Read More

Lady Colonels Shut Out Hancock County

HENDERSON, Ky. (4/17/15) — Host Henderson County limited Hancock County to three hits and pulled away to win 3-0 in a… Read More

Most Read This Week

April 13, 2015 6139

Three Juveniles, Adult Accused of Vandalizing…

by Deputy Will Coursey
April 14, 2015 4756

Several Juveniles Charged in Connection with Fight

by SurfKY News
April 16, 2015 3324

Crime Stoppers Fugitive of the Week – April 16,…

by Hopkinsville – Christian County Crime Stoppers
April 17, 2015 3008

An Open Letter from an Addict

by Olivia Kirks
April 11, 2015 2953

Juvenile Injured When Struck by Vehicle

by Madisonville Police

Most Read This Month

March 18, 2015 10042

UPDATE: Hanson Man Located in Henderson, Taken to…

by Trooper Stu Recke
April 02, 2015 8425

UPDATE: Madisonville Man Injured in Head-on…

by Doreen Dennis, SurfKY News

Stories Trending Now

April 17, 2015 3008

An Open Letter from an Addict

by Olivia Kirks
April 17, 2015 964

Madisonville Police Reports Released

by Rita Dukes Smith, SurfKY News Director
April 17, 2015 937

Two Charged in Connection with Powderly Firearms…

by SurfKY News
April 17, 2015 818

Police Officers Building Up Community by Helping…

by Doreen Dennis, SurfKY News
April 17, 2015 737

Hopkins County Sheriff's Reports Released

by SurfKY News
April 18, 2015 607

Man Charged with Attempting to Coerce Minor for…

by Madisonville Police Department
April 17, 2015 514

'The Bidding is On' at Annual Library Auction

by Tammy Holloway, SurfKY News
April 17, 2015 430

Brown Pitches Baseball to Series Opener over…

by UK Athletics
April 17, 2015 415

Free Seedling Plantings Available While Supplies…

by Amber Averitt, SurfKY News