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

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

ku company logo 300PROVIDENCE, Ky. (4/30/14) — Providence 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 Madisonville, 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.

3/12 - 718 switched from reg 2 to hopkins only
3/13 - 16

Stock Report

1 DOW 17,001.22
-38.27 (-0.22%)    
2 S&P 1,988.40
-3.97 (-0.20%)    
3 NASDAQ 4,538.55
+6.45 (0.14%)    
3/12 - 718 switched from reg 2 to hopkins only
3/13 - 16
3/12 - 718 switched from reg 2 to hopkins only
3/13 - 16

In Other News...

Muhlenberg County School Board Special Meeting Called

MUHLENBERG COUNTY, Ky. (8/22/14) — There will be a special called meeting of the Muhlenberg County Board of Education… Read More

Muhlenberg Task Force on Trail of Home Invasion Suspects

MUHLENBERG COUNTY, Ky. (8/21/14) — A team of Muhlenberg's finest are on the hunt for three suspects reported to have… Read More
3/12 - 718 switched from reg 2 to hopkins only
3/13 - 16

Most Read This Week (Site-Wide)

August 21, 2014 5590

Muhlenberg Task Force on Trail of Home…

in News by Wes Miller
August 18, 2014 4434

Man Injured in Early Morning WKP Accident

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 18, 2014 4190

Owensboro Board of Commissioners…

in News by Beth Cecil
August 20, 2014 3987

Park Avenue Trespass Call Leads to…

in Top Stories by Madisonville Police Department
August 18, 2014 3978

Unlawful Solicitation

in News by Sgt. J.D. Winkler

Most Read Stories from Hopkins County

August 20, 2014 3987

Park Avenue Trespass Call Leads to…

in Top Stories by Madisonville Police Department
August 18, 2014 2700

Madisonville Man Charged for Shoplifting,…

in Top Stories by Madisonville Police Department
August 21, 2014 1924

Pedestrian Struck on East Arch Street,…

in Top Stories by Officer Ryan Clark
August 20, 2014 1671

Dawson Springs Woman Arrested for Driving…

in Top Stories by SurfKY News
August 18, 2014 1473

Madisonville Firefighters Recognized for…

in Top Stories by Rita Dukes Smith, SurfKY News Director

Most Read Stories from Owensboro

August 18, 2014 4190

Owensboro Board of Commissioners…

in News by Beth Cecil
August 18, 2014 3978

Unlawful Solicitation

in News by Sgt. J.D. Winkler
August 18, 2014 3849

RiverArtes Opening at OMFA

in News by Owensboro Museum of Fine Art
August 19, 2014 3323

Free Arthritis Exercise Program will be…

in News by Woody Maglinger
August 19, 2014 3242

Municipal Art Collection on Exhibit at…

in News by Mary Bryan Hood

Most Read Stories from Muhlenberg County

August 18, 2014 4434

Man Injured in Early Morning WKP Accident

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 18, 2014 3872

Luke's Flea Market Vendors' Home Away…

in Top Stories by Charles W. Riley II, SurfKY News
August 18, 2014 3679

'How Dry I Was'

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 19, 2014 3202

'Another One Bites the 'Duct'

in Top Stories by Paul McRee, SurfKY News
August 19, 2014 2561

Drakesboro Woman Injured When Tree Falls…

in Top Stories by Martha Clark

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