Rebuttal Testimony on Environmental Compliance for Kentucky Utilities and Louisville Gas and Electric Companies

Strategic Insights -

In a regulatory document released by the Kentucky Public Service Commission, Philip A. Imber, Director of Environmental Compliance for Kentucky Utilities Company and Louisville Gas and Electric Company, presents rebuttal testimony to address environmental regulation concerns. Imber asserts that ensuring compliance with ozone NAAQS requires constructing the Ghent 2 SCR, and carbon regulations make NGCC more valuable. He also clarifies that delaying the retirement of Mill Creek 2 would require city and state environmental permitting approval.

Key Takeaways:

  • Imber agrees that the Good Neighbor Plan is currently stayed and does not apply to Kentucky, and the EPA must now act to approve or deny the Kentucky state implementation plan (SIP).
  • The EPA and Kentucky have statutory obligations under the Clean Air Act to ensure nationwide attainment and maintenance of the 2015 Ozone NAAQS, including addressing interstate transport and downwind ozone problems.
  • Kentucky is at risk of nonattainment with the 2015 Ozone NAAQS, and the construction of Ghent 2 SCR is necessary to ensure compliance with ozone season NOx mass emissions allowances.
  • Imber disputes O'Leary's assertion that new natural gas generation makes the companies vulnerable to future carbon risk, arguing that carbon regulations make NGCC more valuable and important.
  • NGCC units can achieve high efficiency and relatively low emissions per megawatt hour, making them a compliance-friendly generation option under carbon constraints.
  • Extending the life of Mill Creek 2 would require modifying the Title V construction permit, which requires approval from the Louisville Metro Air Pollution Control District Board and updated calculations under 316(b) of the Clean Water Act.

Statistics:

  • The 2015 Ozone NAAQS has attainment deadlines that have passed, with 2026 being the date by which reasonably available control technology should have been installed.
  • Absolute NOx emissions from coal-fired units in Kentucky decrease by approximately 149 tons per year after installing NGCC units.
  • By 2026, the EPA can perform a NOx SIP call or implement other regulations to immediately reduce NOx emissions from coal-fired units.
  • Imber asserts that under carbon constraints, NGCC units can achieve high efficiency and relatively low emissions per megawatt hour.

Sources:

  • Commonwealth of Kentucky Before the Public Service Commission In the Matter of: Electronic Application of Kentucky Utilities Company and Louisville Gas and Electric Company for Certificates Case No. 2025-00045 and Site Compatibility Certificates
  • Hotaling Testimony at 4, 47; Medine Testimony at 8.
  • O'Leary Testimony at 9-11.
  • Case No. 2024-00326, IRP Vol. III, 2024 IRP Resource Assessment at 48.