Looming retirement of nearly one-third of aging LG&E and KU generation fleet underlies push for new approvals

According to Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU), nearly a third of the combined capacity of their aging generation fleet will be retired by 2028 as coal generation reaches its end, and the pair have filed for replacement generation approvals.

Two natural gas plants, a battery storage facility, nearly 1,000 MW of new solar generation, and major energy efficiency programs were proposed to replace the outgoing energy. The energy efficiency proposal, in particular, would represent the largest in the companies’ history and help them to reduce overall generation needs by nearly 200 MW.

“For decades, coal-fired generation has served our customers well, but many of our generating units are reaching the end of their economic life, and it is no longer cost-effective to make the needed investments to meet increasingly stringent environmental regulations,” John Crockett, president of LG&E and KU, said. “The least-cost solution to reliably and affordably meet our customers’ energy demands now and into the future is to further diversify our generation fleet and offer our customers more programs to help them save energy and money.”

Filings were made with the Kentucky Public Service Commission, along with a request for approval by Oct. 1, 2023. They included two 621 MW natural gas combined-cycle units on existing property, solar generation, 125 MW of battery storage, and 14 new energy efficiency programs. Most of the solar side would be provided through four power purchase agreements in excess of 600 MW, but the companies also plan to build a 120 MW solar array in Kentucky’s Mercer County and acquire another in Marion County.

As for the efficiency programs, included will be expansions of existing efforts, benefits for low-income customers on weatherization, energy audits and smart thermostats, and a proposed appliance recycling program for residential customers and small businesses, as well as incentives for customers who reduce consumption during times of high energy demand.

Combined, the proposed portfolio would allow the utilities to potentially decrease their carbon emissions by nearly 25 percent compared to existing levels.