LG&E and KU power Kentucky's growth with plans for new generation and battery storage
PPL 's subsidiaries LG&E and KU have requested approval for additional generation capacity and battery storage to meet Kentucky's unprecedented economic growth and data center demands. The plan includes:
- Two new 645-megawatt natural gas combined-cycle units
- 400 megawatts of battery storage at Cane Run Generating Station
- Environmental control upgrades at Ghent Unit 2
The utilities are discussing potential projects requiring up to 8,000 megawatts, more than double their current energy demand. The first unit (Brown 12) is expected by 2030, followed by Mill Creek 6 in 2031. The battery storage and emission reduction facilities are planned for 2028. Economic load growth is projected to increase by 2,000 megawatts between now and 2032. The Kentucky Public Service Commission is expected to rule on the request by November.
Le sussidiarie di PPL, LG&E e KU, hanno richiesto l'approvazione per una capacità di generazione aggiuntiva e per lo stoccaggio di batterie al fine di soddisfare la crescita economica senza precedenti del Kentucky e le esigenze dei data center. Il piano include:
- Due nuove unità a ciclo combinato a gas naturale da 645 megawatt
- 400 megawatt di stoccaggio di batterie presso la Cane Run Generating Station
- Aggiornamenti dei controlli ambientali presso l'Unità 2 di Ghent
Le utility stanno discutendo progetti potenziali che richiedono fino a 8.000 megawatt, più del doppio della loro attuale domanda energetica. La prima unità (Brown 12) è prevista per il 2030, seguita da Mill Creek 6 nel 2031. Le strutture di stoccaggio delle batterie e di riduzione delle emissioni sono pianificate per il 2028. Si prevede che la crescita del carico economico aumenti di 2.000 megawatt tra ora e il 2032. La Commissione dei Servizi Pubblici del Kentucky dovrebbe pronunciarsi sulla richiesta entro novembre.
Las subsidiarias de PPL, LG&E y KU, han solicitado aprobación para una capacidad de generación adicional y almacenamiento de baterías para satisfacer el crecimiento económico sin precedentes de Kentucky y las demandas de los centros de datos. El plan incluye:
- Dos nuevas unidades de ciclo combinado de gas natural de 645 megavatios
- 400 megavatios de almacenamiento de baterías en la Estación Generadora Cane Run
- Mejoras en el control ambiental en la Unidad 2 de Ghent
Las utilidades están discutiendo proyectos potenciales que requieren hasta 8,000 megavatios, más del doble de su demanda energética actual. Se espera que la primera unidad (Brown 12) esté lista para 2030, seguida de Mill Creek 6 en 2031. Las instalaciones de almacenamiento de baterías y reducción de emisiones están planeadas para 2028. Se proyecta que el crecimiento de la carga económica aumente en 2,000 megavatios entre ahora y 2032. Se espera que la Comisión de Servicios Públicos de Kentucky se pronuncie sobre la solicitud para noviembre.
PPL의 자회사인 LG&E와 KU는 켄터키의 전례 없는 경제 성장과 데이터 센터 수요를 충족하기 위해 추가 발전 용량과 배터리 저장소 승인을 요청했습니다. 계획에는 다음이 포함됩니다:
- 645메가와트의 자연가스 복합 사이클 유닛 2개
- Cane Run 발전소에 400메가와트의 배터리 저장소
- Ghent Unit 2의 환경 제어 업그레이드
유틸리티는 현재 에너지 수요의 두 배가 넘는 최대 8,000메가와트를 요구하는 잠재적 프로젝트에 대해 논의하고 있습니다. 첫 번째 유닛(Brown 12)은 2030년까지 예상되며, Mill Creek 6은 2031년에 이어질 것입니다. 배터리 저장소 및 배출 감소 시설은 2028년으로 계획되어 있습니다. 경제적 부하 성장은 현재부터 2032년까지 2,000메가와트 증가할 것으로 예상됩니다. 켄터키 공공 서비스 위원회는 11월까지 요청에 대한 결정을 내릴 것으로 보입니다.
Les filiales de PPL, LG&E et KU, ont demandé l'approbation pour une capacité de génération supplémentaire et un stockage de batteries afin de répondre à la croissance économique sans précédent du Kentucky et aux demandes des centres de données. Le plan comprend :
- Deux nouvelles unités à cycle combiné au gaz naturel de 645 mégawatts
- 400 mégawatts de stockage de batteries à la centrale électrique de Cane Run
- Mises à niveau des contrôles environnementaux à l'Unité 2 de Ghent
Les services publics discutent de projets potentiels nécessitant jusqu'à 8 000 mégawatts, plus du double de leur demande énergétique actuelle. La première unité (Brown 12) est attendue pour 2030, suivie de Mill Creek 6 en 2031. Les installations de stockage de batteries et de réduction des émissions sont prévues pour 2028. Une augmentation de 2 000 mégawatts de la croissance de la charge économique est projetée entre maintenant et 2032. La Commission des services publics du Kentucky devrait se prononcer sur la demande d'ici novembre.
Die Tochtergesellschaften von PPL, LG&E und KU, haben die Genehmigung für zusätzliche Erzeugungskapazitäten und Batteriespeicher beantragt, um dem beispiellosen wirtschaftlichen Wachstum und den Anforderungen der Rechenzentren in Kentucky gerecht zu werden. Der Plan umfasst:
- Zwei neue 645-Megawatt-Gaskraftwerke im Kombikraftwerk
- 400 Megawatt Batteriespeicher an der Cane Run Generating Station
- Umweltkontroll-Upgrades an der Ghent Einheit 2
Die Versorgungsunternehmen diskutieren potenzielle Projekte, die bis zu 8.000 Megawatt erfordern, mehr als doppelt so viel wie ihre aktuelle Energienachfrage. Die erste Einheit (Brown 12) wird bis 2030 erwartet, gefolgt von Mill Creek 6 im Jahr 2031. Die Batteriespeicher- und Emissionsreduktionsanlagen sind für 2028 geplant. Es wird erwartet, dass das wirtschaftliche Lastwachstum bis 2032 um 2.000 Megawatt zunimmt. Die Kentucky Public Service Commission wird voraussichtlich bis November über den Antrag entscheiden.
- Significant expansion plan to meet growing energy demand
- Potential for 8,000 MW of new business demand, double current capacity
- Modern technology implementation with battery storage improving grid reliability
- Environmental improvements through emission reduction facilities
- Large capital investment required for new infrastructure
- Long implementation timeline (2028-2031) for capacity additions
- Heavy reliance on natural gas for new generation units
Insights
PPL's subsidiaries have taken a significant forward-looking step by requesting regulatory approval for substantial capacity expansion in Kentucky. The plan includes two 645-megawatt natural gas combined-cycle units and 400 megawatts of battery storage - representing a major capital investment positioned to capture unprecedented regional economic growth.
The timing and scale here deserve investor attention. LG&E and KU cite potential new business demand of up to 8,000 megawatts - more than double their current energy requirements. This isn't speculative planning; it's responding to tangible economic development already underway in Kentucky, including manufacturing growth and increasing data center interest.
From an infrastructure investment perspective, the phased implementation (battery storage by 2028, first gas unit by 2030, second by 2031) creates a measured capital deployment timeline that should provide earnings visibility through the early 2030s. As these assets would enter the regulated rate base upon completion, they represent potential long-term earnings drivers if approved.
The balanced approach - combining natural gas generation with substantial battery storage - demonstrates prudent planning that addresses both immediate reliability needs and future flexibility requirements. The November 2025 regulatory decision represents the next key milestone for this growth initiative.
This filing represents a textbook example of how the regulated utility model is designed to function - identifying future demand growth and proactively seeking regulatory authorization for capacity additions. The Kentucky PSC's earlier acknowledgment (in 2023) of generation needs at the E.W. Brown facility suggests regulatory alignment with the capacity expansion concept, though the scale of investment will still face thorough review.
What stands out from a regulatory perspective is the explicit recognition of the utilities' obligation to serve this new economic development load "in the most reasonable least-cost manner." This statutory requirement creates a favorable regulatory framework for approval, particularly when tied to broader economic benefits for Kentucky.
The inclusion of environmental control upgrades (selective catalytic reduction) for the Ghent facility demonstrates regulatory compliance planning running parallel to capacity expansion. This integrated approach typically receives more favorable treatment than piecemeal requests.
For PPL investors, the regulatory timeline is clear: expect a ruling by November 2025. If approved, these assets would enter the rate base upon completion, creating a straightforward path to return on invested capital through regulated rates. The multi-year construction timeline would provide gradual, predictable capital deployment rather than immediate balance sheet impact.
Accelerated economic development and data center growth driving need for more energy
The unprecedented economic growth and data center interest also means a greater need for electricity. As a result, Louisville Gas and Electric Company and Kentucky Utilities Company, subsidiaries of PPL Corporation (NYSE: PPL), requested approval for a Certificate of Convenience and Necessity today from the Kentucky Public Service Commission for additional generation capacity and battery storage.
LG&E and KU are proposing a significant investment in
- Building two new, highly efficient 645-megawatt natural gas combined-cycle units. These modern generating stations will use advanced technology, similar to the one currently under construction at the company's Mill Creek Generating Station in
Jefferson County . - Adding 400 megawatts of battery storage to the power grid. Battery storage is a key component of a modern energy system, allowing for better management of power supply and increased reliability at all times of the day.
- Upgrading environmental controls on Unit 2 at the Ghent Generating Station to further reduce emissions.
"This is an exciting time for
LG&E and KU currently are in discussions with a variety of businesses that, all total, in the coming years have the potential generation need of up to 8,000 megawatts, more than double the utilities' current energy demand. As regulated utilities, LG&E and KU are required to serve this new economic development load in the most reasonable least-cost manner.
The potential need for additional generation at the companies' E.W. Brown Generating Station in
Additionally, given the anticipated economic load growth increases by 2,000 megawatts between now and 2032, the companies plan to install 400 megawatts of battery energy storage at the Cane Run Generating Station and a selective catalytic reduction facility to reduce nitrogen oxide (NOx) emissions for Ghent Unit 2. Both will be available in 2028.
"We are pleased that our affordable generation and state regulations are encouraging growth that benefits all Kentuckians by bringing more jobs and additional tax revenue to the commonwealth,"
The KPSC is expected to rule on the CPCN request by November.
Louisville Gas and Electric Company and Kentucky Utilities Company, part of the PPL Corporation (NYSE: PPL) family of companies, are regulated utilities that serve more than 1.3 million customers and have consistently ranked among the best companies for customer service in
For more information:
Contact the LG&E and KU 24/7 media hotline at (502) 627-4999.
For financial analysts: Andy Ludwig, 610-774-3389
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SOURCE LG&E and KU
FAQ
What new generation capacity is PPL adding in Kentucky through LG&E and KU?
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