Kentucky Attorney General Announces Settlement with LG&E/KU to Keep Energy Affordable and Reliable

Protecting Kentuckians’ wallets and promoting reliable energy

FRANKFORT, Ky. (July 30, 2025) --  Kentucky Attorney General Russell Coleman announced a proposed settlement agreement today with LG&E/KU aimed at protecting Kentuckians’ wallets and promoting reliable energy.

In sharp contrast to the nonsensical green agenda of the Biden Administration, this agreement reinvests in affordable and reliable fossil fuel energy to power Kentucky’s future. Under the terms of the settlement, LG&E/KU will construct two new natural gas combined cycle units, at Mill Creek and Brown Station, fulfilling a critical need at a time when energy shortages are becoming increasingly common nationwide. The companies will also extend the lifespan of two coal plants, allowing them to continue delivering low-cost energy to Kentucky families and businesses.

Both measures are consistent with President Trump’s efforts to unleash American energy, which call for our country to produce more reliable and affordable electricity. The companies also agreed not to pursue an uneconomical battery storage facility, saving ratepayers approximately $775 million.

In addition, General Coleman reached an agreement with LG&E/KU to protect ratepayers from costs of building the new Mill Creek Gas Plant, located on Dixie Highway in Jefferson County. The companies have agreed that revenues from new heavy loads, such as data centers, will help offset families’ bills. The agreement has additional safeguards to protect consumers, even if there is less need for commercial power.

“We continue delivering on our responsibility to promote affordable and reliable energy for Kentucky families. This agreement taps into Kentucky’s abundant natural resources and our ‘all-of-the-above’ energy strategy to power the Commonwealth’s bright future,” said Attorney General Coleman. “By securing our affordable energy future, we’ve also kept our Commonwealth open for new business investment, job creation and economic growth.”

The Attorney General and LG&E/KU filed the proposed settlement with the Public Service Commission along with other intervenors in the case. LG&E is headquartered in Louisville, while KU is based in Lexington. Together, the two utilities serve over one million Kentuckians.

Executive Director of the Attorney General’s Office of Rate Intervention John Horne and Deputy Executive Director Mike West represented the Commonwealth. They worked alongside the Kentucky Industrial Utility Customers and the Kentucky Coal Association.

To see the filing click here