Accelerated economic development and data
center growth driving need for more energy
LOUISVILLE, Ky., Feb. 28,
2025 /PRNewswire/ -- Record-breaking economic growth
in the commonwealth is catching worldwide attention and benefiting
all Kentuckians with more job opportunities, increased tourism and
additional tax revenue.
The unprecedented economic growth and data center interest also
means a greater need for electricity. As a result, Louisville Gas
and Electric Company and Kentucky Utilities Company, subsidiaries
of PPL Corporation (NYSE: PPL), requested approval for a
Certificate of Convenience and Necessity today from the Kentucky
Public Service Commission for additional generation capacity and
battery storage.
LG&E and KU are proposing a significant investment in
Kentucky's energy future,
including:
- Building two new, highly efficient 645-megawatt natural gas
combined-cycle units. These modern generating stations will use
advanced technology, similar to the one currently under
construction at the company's Mill Creek Generating Station in
Jefferson County.
- Adding 400 megawatts of battery storage to the power grid.
Battery storage is a key component of a modern energy system,
allowing for better management of power supply and increased
reliability at all times of the day.
- Upgrading environmental controls on Unit 2 at the Ghent
Generating Station to further reduce emissions.
"This is an exciting time for Kentucky as the interest in locating new and
expanding businesses continues to grow," said John R. Crockett III, LG&E and KU President
and PPL Chief Development Officer. "These investments in our system
will allow us to continue serving our customers safely and reliably
while meeting our regulatory obligation and the growing economic
interest in the commonwealth – all while maintaining
affordability."
LG&E and KU currently are in discussions with a variety of
businesses that, all total, in the coming years have the potential
generation need of up to 8,000 megawatts, more than double the
utilities' current energy demand. As regulated utilities, LG&E
and KU are required to serve this new economic development load in
the most reasonable least-cost manner.
The potential need for additional generation at the companies'
E.W. Brown Generating Station in Mercer
County was acknowledged by the KPSC in 2023. Since that
time, the unprecedented growth has increased even more than
anticipated, creating the need for even more generation. As
outlined in today's filing and pending approval, LG&E and
KU expect to have the first unit, Brown 12, available in 2030 and
the second unit, Mill Creek 6, available in 2031.
Additionally, given the anticipated economic load growth
increases by 2,000 megawatts between now and 2032, the companies
plan to install 400 megawatts of battery energy storage at the Cane
Run Generating Station and a selective catalytic reduction facility
to reduce nitrogen oxide (NOx) emissions for Ghent Unit 2. Both
will be available in 2028.
"We are pleased that our affordable generation and state
regulations are encouraging growth that benefits all Kentuckians by
bringing more jobs and additional tax revenue to the commonwealth,"
Crockett added. "Since the announcement of BlueOval SK, we have
seen new and expanded manufacturing in our service territory. Now
we're seeing unprecedented interest in locating data centers to
Kentucky. When these large
businesses choose Kentucky, it
benefits all our customers."
The KPSC is expected to rule on the CPCN request by
November.
Louisville Gas and Electric Company and Kentucky Utilities
Company, part of the PPL Corporation (NYSE: PPL) family of
companies, are regulated utilities that serve more than 1.3 million
customers and have consistently ranked among the best companies for
customer service in the United
States. LG&E serves 335,000 natural gas and 436,000
electric customers in Louisville
and 16 surrounding counties. KU serves 545,000 customers in 77
Kentucky counties and 28,000 in
five counties in Virginia. More
information is available
at www.lge-ku.com and www.pplweb.com.
For more information:
Contact the LG&E and KU 24/7
media hotline at (502) 627-4999.
For financial analysts: Andy Ludwig,
610-774-3389
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SOURCE LG&E and KU
