LG&E and KU, utility companies, negotiate deals with crucial partners to address Kentucky's expanding power requirements
LG&E and KU Announce Plans to Meet Kentucky's Growing Energy Needs
Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU) have unveiled a comprehensive plan to address Kentucky's growing energy needs, following a stipulation agreement filed with the Kentucky Public Service Commission (KPSC) in July 2025. The agreement, reached with several key stakeholders, outlines a series of measures aimed at balancing new gas-fired generation capacity with environmental upgrades and cautious coal unit retirement timing.
The plan includes the construction of two new 645-megawatt natural gas combined-cycle generating units. Brown 12 is scheduled to be operational in 2030, while Mill Creek 6 is slated for 2031. These units will employ advanced technology similar to the Mill Creek 5 unit currently under construction.
Another significant aspect of the plan is the installation of a selective catalytic reduction (SCR) system at the coal-fired Ghent Generating Station’s Unit 2. This system will help reduce nitrogen oxide (NOx) emissions, with the facility expected to be in place by 2028.
The agreement also extends the operation of Mill Creek Unit 2, a 297-MW coal-fired unit, beyond its previously planned retirement in 2027 until Mill Creek 6 is operational in 2031, pending environmental permitting.
Notably, the original request to add battery storage at Cane Run station has been withdrawn. However, LG&E and KU reserve the right to file for battery storage projects separately in the future if needed.
These measures are designed to support LG&E and KU's goal of reliably meeting increased electricity demand driven by economic growth in Kentucky. The agreement anticipates 1,875 MW of new data center load and 580 MW of other commercial and industrial growth expected by 2032.
LG&E and KU serve over 1.3 million customers across Kentucky and Virginia. In Kentucky, LG&E serves 335,000 natural gas and 436,000 electric customers in Louisville and 16 surrounding counties, while KU serves 545,000 customers in 77 Kentucky counties and 28,000 in five counties in Virginia.
The KPSC is expected to rule on the utilities' Certificate of Public Convenience and Necessity (CPCN) request, including the stipulation agreement, by November. More information about LG&E and KU’s long-term plans and projects can be found at lge-ku.com/investments.
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 settlement agreement was reached with the Attorney General of the Commonwealth of Kentucky, Kentucky Industrial Utility Customers, Inc., Southern Renewable Energy Association, and Kentucky Coal Association, Inc.
The forecasted record-breaking economic growth and data center development last fall further underscore the need for a robust and sustainable energy infrastructure. LG&E and KU, as regulated utilities that are part of the PPL Corporation family of companies, are committed to meeting this challenge while ensuring energy reliability and environmental compliance as Kentucky’s energy landscape evolves.
The comprehensive plan revealed by LG&E and KU for addressing Kentucky's growing energy needs includes the construction of new natural gas generating units in the industry sector, with Brown 12 scheduled for 2030 and Mill Creek 6 slated for 2031. Meanwhile, the agreement also includes the installation of a nitrogen oxide emission-reducing system, the selective catalytic reduction (SCR) system, in the finance sector, at the coal-fired Ghent Generating Station’s Unit 2, with an expected completion date of 2028.
