New energy plans for Kentucky ignore renewable resources and will raise electric bills | Opinion
Energy utilities like Louisville Gas and Electric and Kentucky Utilities are regulated by the Public Service Commission to ensure safety, fairness, and reliability of utility services. Every three years, each electric utility must submit an Integrated Resource Plan to the PSC, outlining their strategy for meeting future energy demands over the next 15 years. Utilities can include plans for new power plants, renewable energy, and energy efficiency/demand reduction programs. LG&E/KU’s plan includes a lot of the first, less of the second, and very little of the last.
LG&E and KU filed their plan with the PSC on Oct. 18, 2024 (Case No. 2024-00326). The 2024 IRP includes strategies approved in 2023, such as two coal retirements, a new natural gas plant, a battery storage project, energy efficiency programs, and two solar projects. However, the IRP stated that 637 megawatts of solar, approved by the Public Service Commission in 2023, will not move forward. To put this in perspective — 637 megawatts of solar could serve the energy needs of approximately 70,000 homes!
To summarize., LG&E and KU expect economic development to increase the demand for electricity by 30-45% by 2032, primarily driven by the possibility of new data centers coming to Kentucky. To meet this forecasted load growth, LG&E/KU are proposing additional gas generation investments, which could drive higher rates for the next 40 years. Accelerated investments in energy efficiency and local distributed energy resources, like rooftop solar and advanced batteries, would be cheaper and bring more benefits to customers, but these options are overlooked as a way to meet expected demand.
With already high rates, additional rate increases could contribute to the affordable housing crisis and other cost of living issues many Kentuckians are already experiencing. High energy costs strain household budgets, reduce disposable income, and can put households at risk of being disconnected due to bill debt. This puts hard working Kentuckians at risk of negative health outcomes, eviction, and more.
The Metropolitan Housing Coalition, along with Kentuckians for the Commonwealth, Mountain Association, and Kentucky Solar Energy Society, represented by Kentucky Resources Council and Earthjustice, have jointly intervened on LG&E/KU’s Integrated Resource Plan on behalf of low and fixed income families to ensure that rates remain affordable and promote clean, reliable energy. However, we need your help! There is a public process for people to engage in PSC/utility decisions, but many people don’t know about the PSC, and they don’t know how to participate. Unfortunately, if the public doesn’t speak up, the PSC only hears the utility and business perspectives and can’t make the best decisions for us.
It is important that citizen voices, like yours, are heard. We can all agree that our utility bills should not increase to fund new fossil fuel plants — and if you agree, consider submitting a comment to the PSC. You can submit a public comment by simply emailing the PSC at psc.comment@ky.gov with your statement, your name, and case no. 2024-00326.
Sarah Pierce represents Metropolitan Housing Coalition; this letter was also supported by the Kentucky Solar Energy Society, Kentuckians for the Commonwealth; and the Mountain Association.
This story was originally published March 25, 2025 at 3:13 PM.