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Kentucky Utilities and LG&E's Energy Initiatives

On October 28, 2025, Louisville Gas and Electric Company (LGE) and Kentucky Utilities Company (KU) secured a significant approval from the Kentucky Public Service Commission (KPSC) to advance their energy generation initiatives. This development is vital for supporting both current and future customer needs amidst the state's unprecedented economic growth.

Project Overview

The KPSC green-lit plans for LGE and KU to construct two new highly efficient natural gas combined-cycle units—Mill Creek 6 and Brown 12—each with a capacity of 645 megawatts. Additionally, the utilities will enhance environmental technology at the Ghent Generating Station by installing a selective catalytic reduction facility for Unit 2. These advancements are geared towards ensuring reliable energy delivery as the economy in Kentucky expands rapidly.

John R. Crockett III, the president of LGE and KU, expressed excitement about the time of rapid business expansion, stating, “These generation projects help ensure we continue to safely and reliably serve all customers and new economic development growth in the lowest reasonable cost manner.” This approach reflects a strong commitment to not just meeting current energy demands, but also preparing for future growth.

Economic Drivers

Kentucky's economic landscape has seen a boom, prompting LGE and KU to file for a Certificate of Public Convenience and Necessity (CPCN) in February. This certificate sought approval for the new natural gas units, along with enhancements to existing infrastructure and the installation of additional battery storage. However, a stipulation agreement reached on July 29 with major stakeholders, including the Attorney General of Kentucky and the Kentucky Industrial Utility Customers, facilitated the progress. While the battery storage project was withdrawn to prioritize immediate needs, it remains an option for future consideration. The agreement also paved the way for extending the operation of the Mill Creek 2 coal unit temporarily until the new units come online, ensuring stability during the transition.

Future Outlook

Based on the timeline set by the KPSC, the first of the new units, Brown 12, is expected to be operational by 2030, followed by Mill Creek 6 in 2031. Meanwhile, the Ghent 2 SCR upgrade is projected to come online in 2028. The KPSC's order did not include decisions regarding two proposed rate mechanisms but noted their potential for future discussions.

LGE and KU's generation capacity currently exceeds 7,200 megawatts, which involves a mix of coal, natural gas, solar, and hydropower resources. This diversified approach allows for a reliable energy supply while also offering flexibility to adjust to changing fuel prices. LGE and KU prioritize cost-efficient energy generation, ensuring affordability alongside dependable service to their customers.

Long-Term Commitment

As the demand for energy continues to rise alongside Kentucky's growth prospects, LGE and KU remain committed to expanding their capabilities and improving their service delivery. They appreciate the collaborative efforts of all stakeholders involved and look forward to addressing the remaining items not previously approved by the Commission. The utilities emphasize their dedication to meeting Kentucky’s energy needs while upholding customer service standards in both reliability and quality.

To learn more about LGE and KU’s ongoing projects and their long-term energy strategies, please visit lge-ku.com/investments.

Louisville Gas and Electric Company and Kentucky Utilities Company, part of PPL Corporation (NYSE PPL), serve over 1.3 million customers, showcasing a commitment to customer satisfaction and sustainable energy practices.