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| LG&E and KU |
LG&E and KU Plan Major Energy Infrastructure Expansion
Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) have submitted a request for approval to build two 645MW natural gas power stations and a 400MW battery energy storage system (BESS). The companies filed for a Certificate of Convenience and Necessity (CCN) with the Kentucky Public Service Commission on February 28, 2025.
Addressing Future Energy Demands
LG&E and KU recognized in 2023 that additional generation might be necessary at the E.W. Brown Generating Station in Mercer County, Kentucky. They anticipate commissioning the first natural gas unit, Brown Unit 12, in 2030, followed by the second, Mill Creek Unit 6, in 2031.
Additionally, the companies plan to install a 400MW BESS at the Cane Run Generating Station and a selective catalytic reduction system at Ghent Unit 2 to reduce nitrogen oxide (NOx) emissions. These initiatives are scheduled to be operational by 2028.
A subsidiary of PPL Corporation, LG&E and KU cited Kentucky’s economic growth and the rising demand from data centers as key reasons for expanding their natural gas and BESS infrastructure. Existing grid connections for gas stations are expected to influence BESS deployment.
Kentucky’s Role in Power Markets and Data Center Growth
Kentucky is part of both the PJM and MISO power markets. Aurora Energy Research highlighted in 2024 that PJM hosts the world’s largest concentration of data centers. MISO reported that proposed data centers could soon match the energy demand of major U.S. cities.
In January 2025, PowerHouse Data Centers announced plans to construct a hyperscale data center in Louisville, KY. The Kentucky Lantern noted that its projected electricity demand would nearly equal the capacity of LG&E and KU’s coal-fired unit at E.W. Brown Generating Station.
Despite projected load growth, LG&E and KU stated in their Integrated Resource Plan (IRP) that they do not intend to deploy new solar PV until at least 2035 unless economic conditions improve, as reported by PV Tech.
Kentucky’s Energy Storage and Manufacturing Investments
Kentucky is also home to the first pumped hydro energy storage (PHES) project at a former coal mine in the U.S. In October 2024, the U.S. Department of Energy (DOE) committed up to $81 million to the project.
Additionally, Canadian Solar invested an initial $384 million into a lithium-ion battery cell and BESS manufacturing facility, previously occupied by metal-hydrogen battery company EnerVenue.
John R. Crockett III, LG&E and KU President and PPL Chief Development Officer, emphasized the importance of these investments:
“This is an exciting time for Kentucky as the interest in locating new and expanding businesses continues to grow. These investments in our system will allow us to continue serving our customers safely and reliably while meeting our regulatory obligation and the growing economic interest in the commonwealth – all while maintaining affordability.”
