ku company logo 300MADISONVILLE, Ky. (4/30/14) — Madisonville is one of nine municipalities considering the termination of its contract with Kentucky Utilities if an agreement cannot be reached between KU, which supplies the city with the electricity it manages for its customers.

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

e-max.it: 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.

Most Read This Week

August 31, 2015 5350

Man Convicted of Hopkins Countian's Death Granted…

by Doreen Dennis, SurfKY News
August 27, 2015 4840

All is Well after MNHHS Lockdown

by Doreen Dennis, SurfKY News
August 30, 2015 3711

UPDATED: 'He Fought the Law ... but, the Law Won'

by Doreen Dennis, SurfKY News
August 26, 2015 2970

Man Charged with Theft, Meth, Marijuana Growing

by SurfKY News
August 27, 2015 2550

Kentucky Career Center Blood Drive Aug. 31

by SurfKY News

Most Read This Month

August 06, 2015 17773

Muhlenberg Woman Reportedly Suffers Violent…

by SurfKY News
August 24, 2015 11673

Teen Reports Slasher Attempted to Attack Him on…

by Doreen Dennis, SurfKY News

Stories Trending Now

August 31, 2015 5350

Man Convicted of Hopkins Countian's Death Granted…

by Doreen Dennis, SurfKY News
August 30, 2015 1546

Smoke Fills Business, Upstairs Apartment on Center

by Doreen Dennis, SurfKY News
August 31, 2015 1410

Bremen's Father's Country Hams Kentucky Grand…

by Tammy Holloway, SurfKY News
August 30, 2015 1226

Fire at Gas Pump Prompts Firefighters Swift Action

by Doreen Dennis, SurfKY News
August 31, 2015 1075

Man's Threats Result in Evacuation of Adjacent…

by SurfKY News
September 01, 2015 999

Central City Gospelfest Planned for September 2

by SurfKY News
August 31, 2015 935

One Injured When Dump Truck Overturns

by SurfKY News
August 31, 2015 866

Hopkins County Sheriff's Reports Released

by SurfKY News
August 31, 2015 787

Faith and Politics

by KET
August 31, 2015 713

Dawson Springs Police Reports Released

by SurfKY News