01—Abstract
Summary
Summary of the 8-K filed July 29, 2025. Cited figures are marked; the original filing is the authoritative source.
On July 29, 2025, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), subsidiaries of PPL Corporation, filed with the Kentucky Public Service Commission (KPSC) a stipulation and recommendation resolving issues with several intervenors in their February 2025 proceedings on future generation-related construction projects and associated accounting matters.
Under the stipulation, the parties agree the KPSC should grant Certificates of Public Convenience and Necessity for an approximately 645 MW natural gas combined-cycle unit at KU's E.W. Brown Generating Station (Brown 12), an approximately 645 MW natural gas combined-cycle unit at LG&E's Mill Creek Generating Station (Mill Creek 6), and a selective catalytic reduction system at KU's Ghent Generating Station, Unit 2. The stipulation also provides that Brown 12 and Mill Creek 6 construction costs would be eligible for AFUDC accounting treatment, the Ghent 2 SCR would be recovered under the existing Environmental Cost Recovery mechanism, Mill Creek 6 costs would be recovered through a new rate tracker, and the retirement date for Mill Creek Unit 2 would be extended from 2027 to the in-service date of Mill Creek 6.
The companies would withdraw, without prejudice, their proposed four-hour 400MW (1,600 MWh) battery electric storage system at Cane Run, while retaining the right to seek approval of that project or a substitute in future proceedings. The filing states that the original proposals were expected to involve approximately $4.1 billiona of capital expenditures including AFUDC over 2025 to 2031, with approximately $2.3 billion within PPL's 2025 to 2028 $20 billion capital plan, including about $0.9 billion for the Cane Run BESS project. Because of assumed 40% tax credits on that project, the amount in PPL's rate base projection was about $0.5 billion.
PPL is not modifying its capital plan or rate base projections at this time, expects additional investment needs, and plans to update projections with its year-end earnings call. The stipulation remains subject to KPSC approval; a hearing begins August 4, 2025, and a ruling is anticipated in the fourth quarter of 2025, with the outcome unpredictable.
02—Key points
Key Highlights
- Stipulation filed with the KPSC resolves issues with several intervenors in the February 2025 CPCN proceedings for new generation and related accounting matters.
- Proposed generation includes two approximately 645 MW natural gas combined-cycle units: Brown 12 at KU's E.W. Brown Station and Mill Creek 6 at LG&E's Mill Creek Station.
- Ghent Unit 2 selective catalytic reduction system would be recovered under the existing Environmental Cost Recovery mechanism.
- Mill Creek Unit 2 retirement would be extended from 2027 to the in-service date of Mill Creek 6.
- The proposed 400MW (1,600 MWh) Cane Run battery storage project would be withdrawn without prejudice.
- Original proposals were expected to total approximately $4.1 billion in capital expenditures over 2025 to 2031, with about $2.3 billion in PPL's 2025 to 2028 $20 billion capital plan.
- PPL is not changing its capital plan or rate base projections now; updates are planned with the year-end earnings call. A KPSC ruling is anticipated in Q4 2025.
03—Questions
Frequently Asked Questions
What did LG&E and KU agree to with intervenors?
They filed a stipulation with the KPSC supporting two 645 MW natural gas combined-cycle units (Brown 12 and Mill Creek 6), a selective catalytic reduction system at Ghent Unit 2, and extension of Mill Creek Unit 2 operation until Mill Creek 6 is in service, while withdrawing the Cane Run battery storage proposal.
How much capital is associated with these projects?
The filing states the original proposals were expected to involve approximately $4.1 billion, including AFUDC, over 2025 to 2031, with about $2.3 billion in PPL's 2025 to 2028 $20 billion capital plan, of which about $0.9 billion related to the Cane Run BESS project.
Does this change PPL's capital plan or rate base outlook?
Not at this time. PPL states it is not modifying its capital plan or rate base projections now, expects additional investment needs including transmission to support Pennsylvania data centers, and plans to update projections with its year-end earnings call.
When will the KPSC decide, and is approval certain?
A hearing is scheduled to begin August 4, 2025, and LG&E and KU anticipate a KPSC ruling in the fourth quarter of 2025. The companies state they cannot predict the outcome of the proceeding.
04—Continue