01—Abstract
Summary
Summary of the 8-K filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
On October 28, 2025, the Kentucky Public Service Commission (KPSC) issued an order in the proceeding that Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) began in February 2025 seeking certificates of public convenience and necessity (CPCN) and other approvals for new generation facilities and construction-related matters.
The order approved much of the Companies' July 2025 stipulation with intervenors, with certain modifications. It granted CPCNs and site-related permits for two 645 MW natural gas combined-cycle (NGCC) units, E.W. Brown Unit 12 and Mill Creek Unit 6, and for a selective catalytic reduction (SCR) environmental facility at Ghent Unit 2.
The order allowed the Ghent Unit 2 SCR costs to be included in the Companies' existing environmental cost recovery rate mechanism. The KPSC declined to approve the Companies' proposed new rate adjustment cost recovery mechanisms for certain Mill Creek Unit 6 costs and for costs of operating the Mill Creek 2 coal unit beyond its original 2027 retirement date. These denials are without prejudice to resubmission, and the KPSC encouraged the Companies to provide more evidence in separate proceedings.
The Companies are evaluating next steps, including pursuing recovery of these costs in their pending rate case proceedings. The order did not include a CPCN for the Cane Run battery energy storage system (BESS), which was conditionally withdrawn in the stipulation, although LG&E and KU retain the right to seek approval of that project or a similar substitute in future proceedings. The order is subject to rehearing or appeal rights for the Companies and all intervenors, and the Companies cannot predict the outcome if any party pursues those options.
02—Key points
Key Highlights
- KPSC order issued October 28, 2025 grants CPCNs and site-related permits for E.W. Brown Unit 12 and Mill Creek Unit 6, each a 645 MW natural gas combined-cycle unit.
- CPCN approved for the SCR environmental facility at Ghent Unit 2, with related costs includable in the existing environmental cost recovery rate mechanism.
- Per the press release, Brown 12 is expected to be available in 2030, Mill Creek 6 in 2031, and the Ghent 2 SCR in 2028.
- KPSC denied proposed new rate adjustment cost recovery mechanisms for certain Mill Creek Unit 6 costs and for operating Mill Creek 2 beyond its 2027 retirement date; denials are without prejudice to resubmission.
- KPSC declined to rule on a matter related to the retirement date of Mill Creek Unit 2.
- No CPCN issued for the Cane Run battery energy storage system; the Companies retain the right to seek approval of it or a similar project in future proceedings.
- Approved regulatory asset deferral accounting treatment for certain allowance-for-funds-used-during-construction amounts, and noted the KPSC's expectation that stipulating parties will follow through on commitments regarding tariffs and power supply contracts for potential data center or high load customers.
03—Questions
Frequently Asked Questions
What generation projects did the KPSC approve for LG&E and KU?
The KPSC granted the Companies' requested CPCNs and site-related permits to construct E.W. Brown Unit 12 and Mill Creek Unit 6, each a 645 MW natural gas combined-cycle unit, and approved a CPCN for the selective catalytic reduction environmental facility at Ghent Unit 2.
Which requests did the KPSC not approve?
The KPSC did not approve the Companies' proposed new rate adjustment cost recovery mechanisms for certain costs associated with Mill Creek Unit 6 and for costs of operating Mill Creek 2 beyond its original 2027 retirement date. The denials were without prejudice to resubmission, and the KPSC did not include a CPCN for the Cane Run battery energy storage system.
When are the approved units expected to come online?
According to the accompanying press release, Brown 12 is expected to be available in 2030, Mill Creek 6 in 2031, and the Ghent 2 SCR in 2028.
What happens next, and can the decision be challenged?
The order is subject to certain rights to request rehearing or appeal by the Companies and all intervenors. The Companies continue to evaluate the order and related matters and cannot predict the outcome should the Companies or other parties appeal or request rehearing. The Companies are evaluating next steps on the denied cost recovery items, including addressing recovery in their pending rate case proceedings.
04—Continue