01—Abstract
Summary
Summary of the 8-K filed February 28, 2025. Cited figures are marked; the original filing is the authoritative source.
On February 28, 2025, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), both subsidiaries of PPL Corporation, filed a joint application with the Kentucky Public Service Commission (KPSC) seeking approval of certificates of convenience and necessity, site compatibility certificates, and accounting treatment for a set of generation-related plans expected to become operational or be established within the next six years.
The aggregate projected capital expenditures for these proposals are approximately $3.725 billiona over 2025 to 2031, and the filing states these projected expenditures were already included in the companies' latest forecasts in their Form 10-K. The proposals include two 645MW natural gas combined cycle (NGCC) units, one at KU's E.W. Brown station (projected in service 2030) and one at LG&E's Mill Creek station (projected 2031, in addition to a new NGCC unit already under construction there).
The filing also proposes a four-hour 400MW (1,600MWh) battery energy storage facility at LG&E's Cane Run station (2028) and a selective catalytic reduction environmental facility for an existing coal unit at KU's Ghent station (2028). The new NGCC units are expected to be wholly owned by LG&E, and the battery facility jointly owned by LG&E and KU at 32%b and 68% respectively. The companies cannot predict the outcome of the proceedings and anticipate a KPSC ruling in the fourth quarter of 2025 (Case No. 2025-00045).
According to the accompanying press release (Exhibit 99.1), the filing is driven by economic development and data center growth in Kentucky. The companies state they are in discussions with businesses that, in total, could have a potential generation need of up to 8,000 megawatts, more than double the utilities' current energy demand, and that anticipated economic load growth increases by 2,000 megawatts between now and 2032.
02—Key points
Key Highlights
- Joint application to the KPSC for CPCNs, site compatibility certificates and accounting treatment for generation-related projects, Case No. 2025-00045
- Aggregate projected capital expenditures of approximately $3.725 billion over 2025 to 2031, already included in latest Form 10-K forecasts
- Two 645MW natural gas combined cycle units: E.W. Brown (KU, 2030) and Mill Creek (LG&E, 2031)
- 400MW (1,600MWh) four-hour battery storage at Cane Run (LG&E/KU, 32%/68% ownership), projected in service 2028
- Selective catalytic reduction facility for Ghent Unit 2 (KU), projected in service 2028
- Driver is economic development and data center growth; companies cite potential generation need of up to 8,000 MW from prospective customers
- KPSC ruling anticipated in the fourth quarter of 2025; outcome cannot be predicted by the companies
03—Questions
Frequently Asked Questions
How much capital is associated with these generation proposals?
The aggregate projected capital expenditures for the proposals are approximately $3.725 billion over the 2025 to 2031 period. The filing states these projected capital expenditures were included in the companies' latest forecasts reflected in their Form 10-K.
Which entity owns which assets?
The new NGCC units are currently anticipated to be wholly owned by LG&E. The Cane Run battery storage facility is anticipated to be jointly owned by LG&E and KU in respective shares of 32% and 68%. Project costs are to be allocated consistent with ultimate ownership shares and existing shared dispatch, cost allocation, tariff or other frameworks.
When are the projects expected to come online?
The filing projects in-service dates of 2030 for the E.W. Brown NGCC unit, 2031 for the Mill Creek NGCC unit, and 2028 for both the Cane Run battery storage facility and the Ghent selective catalytic reduction facility.
What is driving the need for additional generation?
The press release attributes the need to record economic growth and data center interest in Kentucky. The companies state they are in discussions with businesses that could have a potential generation need of up to 8,000 megawatts, more than double their current energy demand, and that anticipated economic load growth increases by 2,000 megawatts between now and 2032.
When will the KPSC decide on the application?
The companies anticipate a ruling from the KPSC during the fourth quarter of 2025. The companies also state they cannot predict the outcome of the proceedings.
04—Continue