Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster

LG&E, KU Want to Put Natural Gas Facility in Muhlenberg on Hold

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 2014 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 by using one of the social media links below.

In Other News...

Local Author Signs Copies of Her New Book

GREENVILLE, Ky. (9/13/14) — Reba Stanley the author of the new book “A Promise Kept”, appeared at the Muhlenberg County… Read More

Business Spotlight: Chill N Grill

CENTRAL CITY, Ky. (9/12/14) — Chill N Grill is a newly-opened convenience store and grill serving breakfast,… Read More

Most Read This Week (Site-Wide)

September 12, 2014 16216

Woman's Body Found in Theater Day After…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 10, 2014 8008

BREAKING NEWS UPDATE: Police Capture…

in Top Stories by Amber Averitt, SurfKY News
September 10, 2014 4115

Hopkins, Webster Men Arrested for Meth by…

in Top Stories by Sheriff Curtis McGehee
September 10, 2014 3913

Woman Accused of Trying to Give Child…

in Top Stories by Det. Otis Chamberlain
September 13, 2014 2992

MPD Responds to a Disturbance at Baptist…

in Top Stories by Madisonville Police Department

Most Read Stories from Hopkins County

September 10, 2014 8008

BREAKING NEWS UPDATE: Police Capture…

in Top Stories by Amber Averitt, SurfKY News
September 10, 2014 3913

Woman Accused of Trying to Give Child…

in Top Stories by Det. Otis Chamberlain
September 13, 2014 2992

MPD Responds to a Disturbance at Baptist…

in Top Stories by Madisonville Police Department
September 11, 2014 2433

Suspect Arrested for Possession of…

in Top Stories by Madisonville Police Department
September 11, 2014 1937

Three Injured in Early Morning Two-Car…

in Top Stories by Officer Falon Graham

Most Read Stories from Owensboro

September 10, 2014 2102

Owensboro Police Department Activity…

in News by Dennis Beard, SurfKY News
September 10, 2014 1916

Randy Lanham, Marty Brown, Team Up for…

in Top Stories by Paul McRee, SurfKY News
September 10, 2014 1566

Owensboro Police Conduct Investigations

in News by Dennis Beard, SurfKY News
September 11, 2014 1255

Owensboro Police Department Activity…

in News by Dennis Beard, SurfKY News
September 11, 2014 1224

Owensboro Parks Plans Fall Day Camp

in News by Brittni Bunn

Most Read Stories from Muhlenberg County

September 11, 2014 2941

Subject of Officer-Involved Shooting…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 10, 2014 2833

School System's New Finance Officer Aims…

in Top Stories by Charles W. Riley II, SurfKY News
September 10, 2014 2555

School System's Request for $5.5M Falls…

in Top Stories by Charles W. Riley II, SurfKY News
September 11, 2014 2197

Two Accidents Occur on U.S. 62 Within…

in Top Stories by Trooper Stu Recke
September 11, 2014 1718

Job Corps Students Volunteer with…

in Top Stories by Karen Robinson

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 03social 04social 22social 21social 06