Kentucky G&T Plans $2B in New Projects With Eye on Long-Term Reliability

EKPC is building a new $1.32 billion 745-MW gas unit at its existing 341-MW Cooper Station and retrofitting the 225-MW Unit 2 to generate electricity from either coal or gas. (Image Courtesy: EKPC)

East Kentucky Power Cooperative is investing more than $2 billion to build nearly 2,000 megawatts of new generation and convert about 1,700 MW of existing coal-based units to co-fire with natural gas to ensure long-term reliability.

“EKPC is blazing a bold path to ensure reliable, cost-competitive and sustainable electricity for rural Kentucky in coming decades,” said Tony Campbell, president and CEO of the generation and transmission cooperative, which supplies 16 electric co-ops that serve 1.1 million Kentuckians.

“EKPC is building for the future, protecting reliable plants, hedging against high energy costs and reducing greenhouse gas emissions.”

The Winchester-based G&T recently filed with the state public service commission for several significant projects that are targeted to be online in Kentucky by 2030. They include:

  • A new $500 million 214-MW, 12-unit gas power plant called Liberty Station.
  • A new $1.32 billion 745-MW gas unit at EKPC’s 341-MW Cooper Station.
  • A $74 million retrofit of the 225-MW Cooper Unit 2 to generate power from either coal or gas.
  • A $187 million retrofit of the 1,340-MW, four-unit Spurlock Station to generate power from either coal or gas.

In addition, about 757 MW of renewables also are planned for development by 2031.

Campbell said EKPC is on target to reduce carbon dioxide emissions by 35% by 2035, and these investments will safeguard its supply under the Environmental Protection Agency’s power plant rule, which would otherwise shutter its coal units by 2032.

The G&T also plans to double its investment in demand-side management and energy efficiency with four new initiatives and enhancements to three current programs, including incentives to help reduce energy use by almost 70,000 megawatt-hours and cut winter peak by 38 MW.

EKPC ramped up its plant upgrade plans after it discovered a “hidden load” of about 300 MW caused by multiday winter storms that hit its member co-ops with lingering icy temperatures and skyrocketing home heating demand.

“It surprised us all,” said Don Mosier, EKPC’s chief operating officer and executive vice president. “A couple of severe events—Winter Storm Gerri this year and Elliott in 2022—demonstrated to us and our board why we just cannot let go of coal yet.”

The planned generation projects will be “a tremendous game changer for us in the decades to come,” he said. “It really starts that glide path, that transition, towards a less carbon-intensive fleet, and we think that is the best hedge against future regulations.”

Cathy Cash is a staff writer for NRECA.