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...

Owensboro Man Charged With DUI, Endangering Others

OWENSBORO, Ky. (9/2/14) — An Owensboro man was charged with operating a motor vehicle while under the influence of… Read More

Owensboro Police Department Activity Reports

OWENSBORO, Ky. (9/2/14) — Owensboro Police Department reported the following recent arrests and citations: Aaron… Read More

Most Read This Week (Site-Wide)

August 29, 2014 8650

Luke's Flea Market Vendors' Home Away…

in News by Charles W. Riley II, SurfKY News
August 30, 2014 8356

One Hospitalized After Officer-Involved…

in Top Stories by Charles W. Riley II, SurfKY News
August 31, 2014 6375

Passenger in Officer-Involved Shooting…

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 29, 2014 4321

Business Spotlight - Magical Memories…

in Top Stories by Charles W. Riley II, SurfKY News
August 30, 2014 3309

Ponderosa Madisonville to Donate 10…

in Top Stories by Rita Dukes Smith, SurfKY News Director

Most Read Stories from Hopkins County

August 30, 2014 3309

Ponderosa Madisonville to Donate 10…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 01, 2014 1964

Hopkins County Misdemeanor Indictments

in Top Stories by Karen McKnight
August 30, 2014 1480

City of Madisonville Says 'Goodbye' to…

in Top Stories by Amber Averitt, SurfKY News
August 29, 2014 980

MCC Announces New Board Members

in Top Stories by Joyce Riggs
September 02, 2014 946

Dawson Springs Woman Arrested for…

in Top Stories by Madisonville Police Department

Most Read Stories from Owensboro

August 29, 2014 3021

Daviess County Sheriff’s Office Activity…

in News by Dennis Beard, SurfKY News
August 29, 2014 2863

Owensboro Police Department Activity…

in News by Dennis Beard, SurfKY News
August 30, 2014 2158

Owensboro Traffic Advisory

in News by Keith Todd
August 29, 2014 1142

Woman Charged in Assault of 3-Year-Old…

in Top Stories by Dennis Beard, SurfKY News
August 30, 2014 517

Smith, Hamilton honored at Distinguished…

in Top Stories by Dennis Beard, SurfKY News

Most Read Stories from Muhlenberg County

August 29, 2014 4321

Business Spotlight - Magical Memories…

in Top Stories by Charles W. Riley II, SurfKY News
August 30, 2014 2580

Skateboarders Enjoy Own Style of Cruise In

in Top Stories by Charles W. Riley II, SurfKY News
August 29, 2014 2529

School System Facing $5M Shortfall;…

in Top Stories by Charles W. Riley II, SurfKY News
August 29, 2014 2410

No College = Low Wages : A Muhlenberg…

in Top Stories by Ken 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