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 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.

3/13 - 16
3/13 - 16
3/13 - 16

In Other News...

Muhlenberg District Court Fines Handed Down

GREENVILLE, Ky. (10/1/14) — The following fines were recently handed down in Muhlenberg District Court: Christopher… Read More

Longest Students Encouraged to ‘Get Fit’ with Baptist Health Funded Fitness Equipment

GREENVILLE, Ky. (10/1/14) — Longest Elementary School celebrated Project Fit America yesterday, Sept. 30 as Baptist… Read More
3/13 - 16

Most Read This Week (Site-Wide)

September 27, 2014 3962

Hopkins County Grand Jury Misdemeanor Indictments

in News by Karen McKnight
September 29, 2014 3584

Endless Road Strings Bring Orchestra Mix to…

in Top Stories by Paul McRee, SurfKY News
September 27, 2014 2954

Sinister on Center Takes Haunted Manor to Whole…

in Top Stories by Charles W. Riley II, SurfKY News
September 29, 2014 2510

One Injured in Single-Vehicle Collision on…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 29, 2014 2418

Man, Woman Charged with Violating EPO Against…

in Top Stories by Madisonville Police Department
September 28, 2014 2400

Community Shows Support to Muhlenberg Humane…

in Top Stories by Charles W. Riley II, SurfKY News
September 28, 2014 2156

Marching Mustangs Take Third in Ohio Competition

in Top Stories by Information provided by Shawna Hendrix
September 29, 2014 2116

Man Charged with PI, Drugs, After Allegedly…

in Top Stories by Madisonville Police Department
September 27, 2014 1888

Hopkins/Webster Counties Native, Paducah Writer…

in Top Stories by Amber Averitt, SurfKY News
September 27, 2014 1838

Happenings and Meetings - Hopkins County

in News by Amber Averitt, SurfKY News
September 29, 2014 1821

Traffic Accident on Brown Road

in News by Madisonville Police Department

Most Read Stories from Hopkins County

September 29, 2014 2510

One Injured in Single-Vehicle Collision…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 29, 2014 2418

Man, Woman Charged with Violating EPO…

in Top Stories by Madisonville Police Department
September 29, 2014 2116

Man Charged with PI, Drugs, After…

in Top Stories by Madisonville Police Department
September 29, 2014 1587

Man Arrested for DUI, Marijuana Possession

in Top Stories by Madisonville Police Department
September 28, 2014 1422

Angel Garden Dedicated at Baptist…

in Top Stories by Tammy Holloway, SurfKY News

Most Read Stories from Muhlenberg County

September 29, 2014 3584

Endless Road Strings Bring Orchestra Mix…

in Top Stories by Paul McRee, SurfKY News
September 28, 2014 2400

Community Shows Support to Muhlenberg…

in Top Stories by Charles W. Riley II, SurfKY News
September 28, 2014 2156

Marching Mustangs Take Third in Ohio…

in Top Stories by Information provided by Shawna Hendrix
September 29, 2014 1565

Fourteen Year Old Parker Hastings Wins…

in Top Stories by Paul McRee, SurfKY News
September 29, 2014 1546

One Injured in Two-Vehicle Collision

in Top Stories by Trooper Stu Recke

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)


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