The Kentucky Public Service Commission has approved proposals from Kentucky Utilities Company and Louisville Gas & Electric Company for construction of a gas-fired power plant.
The Commission also approved purchase of an existing natural gas-fired plant in Oldham County.
The two utility companies plan to build a 640MW combined cycle generating plant at Cane Run. They also plan to purchase the 495MW Bluegrass Generation simple cycle power plant located in LaGrange. While the combined cycle plant will run most of the time, the simple cycle plant will only run at peak times.
Construction of the new plant at Cane Run is estimated to require a budget of $583 million while the Bluegrass plant is expected to be purchased for around $110 million. The budget for the plant at Cane Run also includes cost of a new natural gas pipeline to the site. The need for additional power comes from plans to replace the coal-fired units at Cane Run and KU's Green River plant in Muhlenberg County and the Tyrone plant in Woodford County.