LG&E and KU finalize arrangements with significant partners in Kentucky, focusing on strategies to accommodate the state's escalating energy demands
Kentucky Public Service Commission to Rule on Utilities' Energy Generation Plan by November
The Kentucky Public Service Commission (KPSC) is set to rule on the joint request from Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) by November, concerning the construction of new energy generation units and environmental upgrades in Kentucky.
LG&E and KU serve over 1.3 million customers across 77 Kentucky counties and 28,000 in five counties in Virginia. The utilities' stipulation agreement, filed in July 2025, outlines plans for meeting Kentucky's growing energy demands, particularly from data centers and large industrial customers.
The agreement includes the construction of two new natural gas combined-cycle units. The first, Brown 12, with a capacity of 645 megawatts, is expected to be operational by 2030. The second unit, Mill Creek 6, will follow suit in 2031. These units will employ advanced, highly efficient technology similar to Mill Creek 5, currently under construction.
Environmental upgrades are also a key part of the plan. A selective catalytic reduction facility will be installed at the Ghent Generating Station’s Unit 2 to reduce nitrogen oxide (NOx) emissions, with an expected operational date of 2028.
The agreement also extends the operation of Mill Creek Unit 2 coal plant beyond its previously planned retirement in 2027 until Mill Creek 6 is online in 2031, subject to environmental permitting. This alteration supports continuous power supply during the transition.
Initially, the companies had planned to add battery storage at Cane Run. However, they withdrew this request in the current agreement, reserving the right to file a future request for battery storage if needed. The earlier plan to add a 400-megawatt battery system in Louisville has been scrapped.
The agreement includes new tariff provisions requiring future data center customers of the new gas plants to pay an "Extremely High Load Factor" rate for energy use, reflecting the anticipated significant load growth from data centers, projected to reach 1,750 megawatts by 2032 in the utilities' service territory.
The stipulation agreement reflects the utilities’ response to Kentucky’s rapid economic growth and the expanding demand for electricity. It was accepted by intervening parties including the Kentucky Attorney General, Kentucky Coal Association, and Kentucky Industrial Utility Customers, Inc.
The timeline for the projects and upgrades is as follows:
| Project/Upgrade | Expected Completion | |----------------------------------------|-------------------------------------| | Selective Catalytic Reduction at Ghent Unit 2 | 2028 | | Brown 12 gas unit | 2030 | | Mill Creek 6 gas unit | 2031 | | Extension of Mill Creek Unit 2 coal operation | From 2027 retirement date to 2031 |
This agreement aims to maintain reliable and environmentally improved power generation while adapting to new economic demands in Kentucky. Parties to the case who did not join the stipulation agreement have the same opportunities as normal to continue participating in the regulatory process.
More information about LG&E and KU's long-term plans and projects can be found at lge-ku.com/investments. This forecast remains on pace and is not dependent upon any one specific project. LG&E and KU forecasted record-breaking economic growth and data center development last fall.
LG&E serves 335,000 natural gas and 436,000 electric customers in Louisville and 16 surrounding counties. The companies, part of the PPL Corporation, are regulated utilities serving over 1.3 million customers in Kentucky and Virginia. The settlement agreement was reached with the Attorney General of the Commonwealth of Kentucky, Kentucky Industrial Utility Customers, Inc., Southern Renewable Energy Association, and the Kentucky Coal Association, Inc.
Sports enthusiasts in Kentucky can anticipate steady power supply for sports facilities as the Kentucky Public Service Commission (KPSC) rules on the utilities' energy generation plan by November. The plan includes the construction of new energy generation units, such as Brown 12 and Mill Creek 6, which will help meet increasing energy demands, even from large sporting events requiring significant power.
