Kentucky PSC approves LG&E/KU to provide solar power to Toyota and Dow

Under new renewable power agreements (RPA) approved by the Kentucky Public Service Commission (PSC) this week, the Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) will be able to provide solar power to Toyota Motor Manufacturing and Dow Silicones Corporation.

LG&E/KU also requested the approval of a 20-year power purchase agreement to purchase energy from the 100-megawatt solar generation facility being constructed by Rhudes Creek Solar, LLC. in Hardin, Ky.

The PPA with Rhudes Creek Solar and the RPAs with Toyota and Dow were entered under LG&E/KU’s Green Tariff Option #3, which was approved in the utility’s most recent rate cases.

As part of the RPA, Toyota will purchase 50 percent of the energy produced by the Hardin facility, while Dow will buy another 25 percent. The rest will be dispersed to LG&E/KU’s other customers. LG&E will have to document fuel cost savings and renewable energy credit revenues in monthly filings to the PSC, who will also review fuel and energy purchases over the long term.

KU will have to show that no-reallocation of costs has occurred or will occur as a result of the RPAs during its next rate proceeding, a clause of the Green Tariff. However, certain amendments to that tariff were also agreed to during this application, bumping the system cumulative up from 50 MW to 125 MW each for LG&E/KU in future RPAs.