LG&E and KU announce plans for two new generating stations; 40 permanent and 250 construction jobs to be created in western Kentucky
Thursday, October 3, 2013
Today our company announced plans to ask the Kentucky Public
Service Commission for permission to construct a second natural gas
combined-cycle generating station (NGCC) and a solar generating facility. The
building of the NGCC plant will generate 250 construction jobs and 40-full time
jobs in Muhlenberg County once the station is online.
Due to increased environmental regulations, we previously
announced the retirement of 800 megawatts of older coal-fired generation at
Cane Run, Green River and Tyrone stations. To offset the lost generation,
construction is currently underway on a 640-megawatt NGCC unit at Cane Run in
Louisville. Today’s filing with the KPSC
is another step to addressing the lost generation and long-term load growth.
We evaluated competitive bids after a request for proposal
was issued in September 2012. They included renewable energy, existing energy
within Kentucky and building new generation. The utilities also considered
short-term proposals (from one to five years) and long-term proposals (from 10
to 20 years). After careful analysis, building a second NGCC at the existing
Green River site proved to be the best long-term solution for baseload
generation. While the details are being finalized, the plant is expected to
have about 700 megawatts of capacity and cost approximately $700 million to construct.
We are also seeking to construct about a 10-megawatt solar
facility costing approximately $25 million at one of our existing generating
stations. This will be Kentucky’s second and largest utility-scale solar facility.
Several sites are still being evaluated in order to determine the optimal
location.
We plan to request the KPSC’s approval by
the end of the year through a regulatory filing known as a “certificate of
public convenience and necessity.” The transparent process allows the public an
opportunity to weigh in. a. Paul W. Thompson, LG&E and KU chief operating
officer, says the new generation will serve customer demand and federal
regulations. “In order to continue to meet our customers’ energy needs and
considering ever-increasing federal environmental regulations, this has been a
lengthy and complicated bid process,” says Thompson. “We’re pleased that the outcome creates
economic development in western Kentucky and provides LG&E and KU customers
with reliable, low-cost energy that will meet the latest set of federal EPA
regulations.”
We intend to have the NGCC plant online in 2018 and the
solar facility online in 2016. If approved, LG&E and KU’s generation
capacity will be 59 percent coal-fired, 40 percent natural gas-fired and 1
percent renewable.
