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Stipulation Agreement Reached in Utilities' CPCN Case in Kentucky

Strategic Insights

— 2 min read

The Kentucky Public Service Commission (KPSC) has been presented with a stipulation agreement by Louisville Gas and Electric Company, Kentucky Utilities Company, and intervening parties involved in the utilities' current request to add new generation. This agreement will support the companies' ability to continue serving customers safely and reliably while meeting Kentucky's record-breaking economic development needs. The stipulation was filed with the KPSC on July 29, 2025, for approval.

The agreement addresses the following key points:

Key Takeaways:

  • The stipulation agreement supports the construction of two 645-megawatt natural gas combined-cycle units, with the first unit, Brown 12, expected to be available in 2030 and the second unit, Mill Creek 6, expected to be available in 2031.
  • The companies will install a selective catalytic reduction facility, available in 2028, to reduce nitrogen oxide (NOx) emissions for Ghent Unit 2.
  • LG&E and KU have agreed to request to extend the operation of Mill Creek Unit 2, subject to environmental permitting, beyond its previously planned 2027 retirement date until Mill Creek 6 is in-service in 2031.
  • The companies are withdrawing their request to add battery storage at Cane Run, but reserve the right to file a separate CPCN request tied to battery storage at a future date if necessary.
  • The agreement reflects the importance of the utilities' role in serving all customers and new economic development load in the lowest reasonable cost manner.
  • 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.
  • Parties to the case who did not join the stipulation agreement have the same opportunities as normal to continue participating in the regulatory process.
  • The KPSC is expected to rule on the utilities' CPCN request, including the stipulation agreement, by November.

Statistics:

  • 1.3 million customers served by LG&E and KU
  • 335,000 natural gas and 436,000 electric customers in Louisville and 16 surrounding counties served by LG&E
  • 545,000 customers in 77 Kentucky counties and 28,000 in five counties in Virginia served by KU
  • Two 645-megawatt natural gas combined-cycle units to be constructed under the stipulation agreement
  • 2030 and 2031 expected operational dates for the first and second units, respectively

Sources:

  • Press release from Louisville Gas and Electric Company and Kentucky Utilities Company, dated July 29, 2025
  • Integrated Resource Plan from Louisville Gas and Electric Company and Kentucky Utilities Company
  • Louisville Gas and Electric Company and Kentucky Utilities Company's website
  • Contact information for LG&E and KU's 24/7 media hotline: (502) 627-4999

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