Kentucky PSC approves KU and LG&E eco-friendly initiatives
The Kentucky Public Service Commission (PSC) approved the environmental compliance plans for Kentucky Utilities Co. (KU) and Louisville Gas & Electric Co. (LG&E) on Wednesday to reduce emissions at the companies’ coal-fired energy facilities.
The new compliance plans require the eliminations of the companies’ remaining coal combustion waste storage ponds and the development of new process water facilities and other environmental improvements that will reduce carbon emissions at the companies’ coal-fired power plants.
The PSC approved a settlement between the utilities, with modifications, that allows the companies to recoup their clean energy investment over the next few years. The new plan reduces the rate of return on equity that the companies are able to earn for the clean energy program and spreads out the rate impact for consumers. The rate will peak in 2022 for KU residential customers, and will peak in 2020 for LG&E residential customers.
The PSC has allowed utilities to recoup the costs of clean energy programs through a ratepayer surcharge since 1994. Consumers see the surcharge listed as a separate charge on utility bills.
KU will invest approximately $675 million for its environmental compliance initiative, while LG&E will invest an estimated $300 million on its program.
