Utilities' IRP filing models scenarios and
addresses increase in load
LOUISVILLE, Ky.,
Oct. 18,
2024 /PRNewswire/ -- Kentucky has seen unprecedented economic
growth in recent years that, fortunately, thanks to an interest in
data centers and other economic development activity, doesn't
appear to be slowing down.
As a result, Louisville Gas and Electric Company and Kentucky
Utilities Company are forecasting in their Integrated Resource Plan
(IRP) filed with the Kentucky Public Service Commission (KPSC)
today the need for additional generation due to the expected influx
of data centers and economic development across the utilities'
service territories.
While the utilities' resource planning is an ongoing process,
the IRP is a snapshot in time of the companies' planning and
required by the KPSC to be filed every three years. It provides an
updated view of load and resources needed to serve customers
safely, reliably and at the lowest reasonable cost in the years to
come.
Despite significant amounts of energy efficiency,
customer-installed solar, and other energy-saving activities that
are forecasted to reduce load by over 3.5 percent by 2032, LG&E
and KU expect economic development to increase system load by 30
percent to 45 percent by 2032 compared to 2024. This unprecedented
load growth will require additional generation to continue to
provide the reliable electric service that customers expect.
The IRP also addresses the uncertainties around the latest
environmental regulations, including the Good Neighbor Plan as it
relates to ozone, the 2024 Effluent Limitation Guidelines, and the
Clean Air Act Section 111(b) and (d) Greenhouse Gas Rules, all
currently in litigation.
"There are always uncertainties when you are planning 15 years
out. The idea behind the IRP is to pick a point in time and
forecast the best path forward based on the current information
that can be modelled," said David
Sinclair, vice president–Energy Supply and Analysis. "We
know there likely will be market and regulatory changes that could
impact our actual plans, but we are confident that, given what we
know today, the IRP modelling and our recommendation provide us
with a solid direction forward."
In the base case, the utilities recommend that the least-cost
path forward to support existing customers, new load and compliance
with environmental regulations, would be to build two new natural
gas combined-cycle generation units (one in 2030 and another in
2031); install 400 megawatts of battery storage in 2028, another
500 megawatts of battery storage and 500 megawatts of solar in
2035; and add selective catalytic reduction to the Ghent Generating
Station Unit 2 in 2028 and environmental compliance technology at
Ghent and Trimble County
Generating Station by 2030. Mill Creek Generating Station Units 3
and 4 and E. W. Brown Generating Station Unit 3 would retire in
2035 near the end of the IRP planning period. In addition, since
the growth of data centers load is driven by customers with
aggressive carbon goals, the IRP presents an enhanced solar plan,
if requested by customers or solar prices become more economically
competitive with other generation. In that scenario the first 200
megawatts are forecasted to be installed in 2028, followed by 200
megawatts in 2030 and 600 megawatts in 2032.
While the IRP is part of the planning process, any new
generation requires a filing with and approval from the KPSC.
About LG&E and KU
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 the United
States. LG&E serves 335,000 natural gas and 436,000
electric customers in Louisville
and 16 surrounding counties. KU serves 545,000 customers in 77
Kentucky counties and 28,000 in
five counties in Virginia. More
information is available
at www.lge-ku.com and www.pplweb.com.
For inquiries: contact the LG&E and KU media hotline at
502-627-4999
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SOURCE Louisville Gas and Electric and Kentucky Utilities