ColumbiaMagazine.com
Printed from:

Welcome to Columbia Magazine  
 



































 
KU & LG&E get PSC approval for solar plant in Mercer County, KY

PSC OKs Kentucky’s First Utility-scale Solar Power Project - KU, LG&E will build 10-megawatt array at plant in Mercer County
Click on headline for complete story

By Andrew Melnykovych
News from Kentucky Public Service Commission

The Kentucky Public Service Commission (PSC) has approved the construction of the state's first major solar-powered electric generating facility.

In an order issued Friday, December 19, the PSC authorized Kentucky Utilities Co. (KU) and Louisville Gas & Electric Co. (LG&E) to build a 10-megawatt (MW) photovoltaic solar array at the E.W. Brown Generating Station in Mercer County. A megawatt of generating capacity produces enough power to supply about 800 average homes.



Friday's order approves an agreement reached by the two utilities and two other parties to the case: the Sierra Club, and Kentucky Industrial Utility Customers Inc. The PSC found the agreement to be consistent with its own analysis of the case. The Kentucky Office of Attorney General was a party to the case but did not sign the agreement.

KU and LG&E originally had sought approval to construct both the solar array and a 670-MW natural gas-fired power plant, to be built in Muhlenberg County. The latter project was canceled after nine municipalities that purchase wholesale power from KU decided to allow their contracts to expire over the next five years, reducing the utility's load by about 325 MW.

Although the loss of the municipal customers made the gas-fired power plant unnecessary, KU and LG&E stated that some new generating capacity would be needed to maintain adequate reserves. The solar plant would meet that need while providing insurance against both potential increases in the cost of fossil fuels and future constraints on carbon dioxide (CO2), the utilities said.

The $36 million cost of the solar array will have a "relatively minor" impact on rates, the PSC said. The relatively higher initial investment required for the solar power project will be partly offset by tax credits and other factors, the PSC said.

The PSC agreed with KU and LG&E that adding solar powered capacity now will help prepare for any future requirements to reduce CO2 emissions produced by burning fossil fuels and "has the ability to reduce potential future CO2 compliance costs," the PSC said.

The solar array will be built on a 153-acre parcel owned by KU just south of the E.W. Brown power plant. The array will consist of about 260 solar panels and associated transformers, switches and other equipment.

KU will own 61 percent of the solar array and LG&E the remaining 39 percent - a split based upon the relative load of the two utilities during daylight hours. The E.W. Brown plant also has coal-fired and gas-fired units owned by KU.

KU and LG&E are both subsidiaries of PPL Corp. LG&E has 397,000 electric customers in the Louisville area. KU serves 543,000 customers in 77 Kentucky counties.

The PSC conducted an evidentiary hearing in the case Nov. 24, 2014.

The PSC's order, other documents in the case and a video of the hearing are available on the PSC website, psc.ky.gov. The case number is 2014-00002 In addition to the order approving construction, the PSC Friday issued an order granting a site compatibility certificate for the solar array, stating that the location is appropriate for the facility. That case is 2014-00133.

The PSC is an independent agency attached for administrative purposes to the Energy and Environment Cabinet. It regulates more than 1,500 gas, water, sewer, electric and telecommunication utilities operating in Kentucky and has approximately 85 employees.


This story was posted on 2014-12-22 06:06:43
Printable: this page is now automatically formatted for printing.
Have comments or corrections for this story? Use our contact form and let us know.



 

































 
 
Quick Links to Popular Features


Looking for a story or picture?
Try our Photo Archive or our Stories Archive for all the information that's appeared on ColumbiaMagazine.com.

 

Contact us: Columbia Magazine and columbiamagazine.com are published by Linda Waggener and Pen Waggener, PO Box 906, Columbia, KY 42728.
Phone: 270.403.0017


Please use our contact page, or send questions about technical issues with this site to webmaster@columbiamagazine.com. All logos and trademarks used on this site are property of their respective owners. All comments remain the property and responsibility of their posters, all articles and photos remain the property of their creators, and all the rest is copyright 1995-Present by Columbia Magazine. Privacy policy: use of this site requires no sharing of information. Voluntarily shared information may be published and made available to the public on this site and/or stored electronically. Anonymous submissions will be subject to additional verification. Cookies are not required to use our site. However, if you have cookies enabled in your web browser, some of our advertisers may use cookies for interest-based advertising across multiple domains. For more information about third-party advertising, visit the NAI web privacy site.