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

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

July 02, 2015 13371

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News
June 29, 2015 4701

UPDATE: Victim of Home Invasion/Homicide Died of…

by SurfKY News
July 02, 2015 4162

Police: Stand Off Suspect in Critical Condition

by Doreen Dennis, SurfKY News
June 29, 2015 3558

Accused Synthetic Marijuana Traffickers Appear in…

by Doreen Dennis, SurfKY News
June 28, 2015 3499

'Curb Service’ at Local Eatery Ends with DUI…

by Doreen Dennis, SurfKY News

Most Read This Month

June 24, 2015 45013

Western Kentucky, Southern Indiana's Largest…

by Doreen Dennis, SurfKY News
July 02, 2015 13371

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News

Stories Trending Now

July 02, 2015 13371

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News
July 02, 2015 4162

Police: Stand Off Suspect in Critical Condition

by Doreen Dennis, SurfKY News
July 01, 2015 2955

Police Seeking Public Help in Locating Subject…

by SurfKY News
July 01, 2015 1553

Two Vehicle Collision Sends One to Hospital

by SurfKY News
July 01, 2015 1494

Crime Stoppers Top Most Wanted - July 2, 2015

by Crime Stoppers
July 01, 2015 1493

Tyson Foods to Add 91 Jobs, Invest $8.2M at…

by Kimberly Tarter
July 01, 2015 1236

Goodman Revival Fills 'Praise in the Park' with…

by Tammy Holloway, SurfKY News
July 01, 2015 1126

Juried Art, Photography Exhibit Open at Glema…

by Tammy Holloway, SurfKY News
July 01, 2015 998

Madisonville Police Arrest Reports Released -…

by SurfKY News
July 01, 2015 778

Muhlenberg Allstars 11-12 Year Olds Take down…

by Mike Groves, SurfKY News