LG&E and KU reach agreement with several key stakeholders on plans to meet Kentucky's growing energy needs

Rhea-AI Summary

PPL Corporation's (NYSE:PPL) subsidiaries Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) have reached a significant stipulation agreement with key stakeholders regarding their generation expansion plans. The agreement supports the construction of two 645-megawatt natural gas combined-cycle units, with Brown 12 expected online in 2030 and Mill Creek 6 in 2031.

The agreement includes the installation of a selective catalytic reduction facility for Ghent Unit 2 by 2028 to reduce NOx emissions, and extends Mill Creek Unit 2's operation beyond its planned 2027 retirement until 2031. The utilities have withdrawn their request for battery storage at Cane Run but maintain the right to file a separate request later.

This expansion plan aims to address Kentucky's unprecedented economic growth and data center development needs, serving over 1.3 million customers across Kentucky and Virginia.

Positive

• Approval for two new highly-efficient 645-megawatt natural gas combined-cycle units to meet growing energy demands
• Environmental improvement through NOx emissions reduction at Ghent Unit 2
• Extension of Mill Creek Unit 2's operation ensures continuous power supply until new unit is operational
• Strong stakeholder support including Attorney General and Kentucky Industrial Utility Customers

Negative

• Withdrawal of battery storage plans at Cane Run facility
• Extended timeline for new capacity with first unit not available until 2030
• Continued reliance on fossil fuel infrastructure with new natural gas units

Stipulation agreement with several intervening parties in the utilities' CPCN case was filed today with the Kentucky Public Service Commission

LOUISVILLE, Ky., July 29, 2025 /PRNewswire/ -- Louisville Gas and Electric Company, Kentucky Utilities Company and several intervening parties involved in the utilities' current request before the Kentucky Public Service Commission to add new generation have reached a stipulation agreement that will support LG&E and KU's ability to continue serving customers safely and reliably, while keeping pace with Kentucky's record-breaking economic development needs.

The agreement was filed today with the KPSC for approval.

Unprecedented economic growth in the commonwealth prompted LG&E and KU, subsidiaries of PPL Corporation (NYSE:PPL), to request approval on February 28 for a Certificate of Public Convenience and Necessity (CPCN) from the Commission to add two new, highly-efficient natural gas combined-cycle units, install more battery storage and upgrade environmental technologies on Unit 2 at Ghent Generating Station. Through the regulatory process, LG&E and KU have responded to hundreds of requests for information on their generation investment plans from parties involved in the case.

The stipulation agreement supports:

• Construction of two 645-megawatt natural gas combined-cycle units as initially proposed. These modern generating units will use advanced technology, similar to Mill Creek 5 currently under construction at the company's Mill Creek Generating Station in Jefferson County. 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.
• Installation, as initially proposed, of a selective catalytic reduction facility, available in 2028, to reduce nitrogen oxide (NOx) emissions for Ghent Unit 2.
• The companies agreeing 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.
• LG&E and KU withdrawing the request to add battery storage at Cane Run, with the companies reserving the right to file a separate CPCN request tied to battery storage at a future date if necessary.

"Kentucky has a very open and transparent regulatory process that allows for customer input and representation, and we appreciate that this process enables thoughtful discussion, opportunities for public input and extensive reviews among the parties involved," said John R. Crockett III, LG&E and KU President. "As Kentucky's largest regulated utilities, we have an obligation to serve all customers and new economic development load in the lowest reasonable cost manner. This agreement reflects the importance of that role and the critical needs addressed in our long-term generation investment plans."

LG&E and KU forecasted last fall through their Integrated Resource Plan record-breaking economic growth and data center development. This forecast remains on pace and is not dependent upon any one specific project.

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.

Visit lge-ku.com/investments to learn more about LG&E and KU's long-term plans and projects to support Kentucky's energy future.

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.

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SOURCE Louisville Gas and Electric and Kentucky Utilities

FAQ

What new generation capacity did PPL's subsidiaries LG&E and KU get approval for in July 2025?

The utilities received support for constructing two 645-megawatt natural gas combined-cycle units: Brown 12 (available 2030) and Mill Creek 6 (available 2031).

How will the July 2025 agreement affect PPL's environmental compliance at Ghent Unit 2?

The agreement includes installing a selective catalytic reduction facility by 2028 to reduce nitrogen oxide (NOx) emissions at Ghent Unit 2.

What happened to LG&E and KU's battery storage plans at Cane Run?

The utilities withdrew their request for battery storage at Cane Run but retained the right to file a separate request for battery storage in the future.

When will PPL's new natural gas units begin operations in Kentucky?

The first unit (Brown 12) will be operational in 2030, and the second unit (Mill Creek 6) will come online in 2031.

How many customers do LG&E and KU serve across their service territory?

The utilities serve more than 1.3 million customers across Kentucky (including 335,000 natural gas and 436,000 electric customers for LG&E, and 545,000 KU customers) and Virginia (28,000 customers).