DUE TO HEAVY SNOWS IN WESTERN KENTUCKY...WIDESPREAD 6 TO 12 INCH SNOWFALL AMOUNTS HAVE HAULTED AREA TRAVEL. ISOLATED 15 INCH AMOUNTS HAVE BEEN REPORTED. DRIFTS UP TO A FOOT AND A HALF HAVE ALSO BEEN REPORTED. THIS IS A DANGEROUS STORM SITUATION AND TRAVEL SHOULD BE AVOIDED IF AT ALL POSSIBLE. (National Weather Service)
Davis Motor Sales banner ad

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 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.

springhour

Most Read This Week

March 02, 2015 9326

Madisonville Teen Faces Numerous Drug Charges

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 25, 2015 8620

Multi-Agency Investigation Nets Large-Scale Meth…

in Top News For All Sites by Trooper Stu Recke
February 25, 2015 6400

New Asian Restaurant Coming to Madisonville

in Local (Hopkins) Top News by Gary Gates, SurfKY News
March 03, 2015 5547

Three Arrested during Traffic Stop

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 25, 2015 4374

Local Man Makes Unique Display from Area’s…

in Local (Hopkins) Top News by Tammy Holloway, SurfKY News
March 02, 2015 3652

HCSO, MPD Join to Bust Alleged Drug Trafficking…

in Local (Hopkins) Top News by Hopkins County Sheriff's Office

Most Read This Month

February 12, 2015

UPDATE: Name of Pennyrile Fatality Officially…

in Top News For All Sites Touching Hopkins by Doreen Dennis, SurfKY News
February 16, 2015

UPDATE: State of Emergency Declared for Kentucky

in Local (Hopkins) Top News by Rita Dukes Smith, SurfKY News Director

Stories Trending Today

March 05, 2015 3028

State of Emergency Declared for Hopkins County

in Local (Hopkins) Top News by Leslie Curneal
March 03, 2015 2514

Superintendent: Spring Break Won't be Touched…

in Hopkins News by Tammy Holloway, SurfKY News
March 04, 2015 1443

Highway Crews Dealing with Landsides in…

in Local (Muhlenberg) Top News by Keith Todd
March 04, 2015 1294

KSP Warns of Old Scam Resurfacing in the Post 2…

in Top News For All Sites Touching Hopkins by Trooper S. C. Recke
March 04, 2015 1027

Adamson Chosen as Madisonville MSU Campus’…

in Top News For All Sites Touching Hopkins by Tammy Holloway, SurfKY News
March 04, 2015 993

Madisonville Police Arrest Reports - March 4, 2015

in Hopkins News by Madisonville Police Department
March 04, 2015 940

Muhlenberg County Educator Inducted into Kentucky…

in Local (Muhlenberg) Top News by WKU News
March 05, 2015 919

KSP Reports Parkway, Interstate Blockages

in Top News For All Sites Touching Hopkins by John Davis, KSP
March 04, 2015 827

Mental Health Services Expanded at Western…

in Top News For All Sites Touching Hopkins by Steve Beshear
March 04, 2015 801

KYEM Monitoring Another Storm System Headed for…

in General News For All Sites by Monica French