KY — Power Infrastructure Updated 2026-07-17

Kentucky

PJM Nuclear Storage Data Center PPAs Transmission Constraints

1. Grid operator and market structure

  • RTO/ISO coverage is mixed: Kentucky includes utilities in PJM, utilities in MISO, TVA-supplied distribution cooperatives, and LG&E/KU as a major vertically integrated utility outside PJM and MISO; EPIC’s June 2026 report identifies Kentucky Power, Duke Energy Kentucky, and EKPC as PJM-participating utilities and Big Rivers as a MISO-participating utility. Kentucky EPIC/University of Kentucky CAER, 2026-06-04
  • Retail structure is regulated: EPIC frames data-center policy in Kentucky around regulated integrated utilities and PSC-approved tariffs or special contracts rather than retail-choice contracting. Kentucky EPIC/University of Kentucky CAER, 2026-06-04
  • EKPC is PJM-integrated: The PSC’s EKPC Rate DCP order notes that EKPC’s transmission system is operated by PJM and that EKPC has been a fully integrated PJM member since 2013. Kentucky PSC Case No. 2025-00140 order, 2025-10-30
  • Big Rivers uses MISO market pass-through structures for the Hawesville proposal: The Big Rivers/Kenergy/TeraWulf handout describes the proposed Hawesville agreement as a MISO energy and capacity market pass-through from MISO to Big Rivers to Kenergy to the customer. Kentucky PSC informal-conference handout, 2026-06-02

2. Interconnection queue (status, depth, reforms)

  • Generator queues are not a direct proxy for data-center load: Public PJM and MISO interconnection queues primarily concern generator interconnections, while data centers enter utility planning through load requests, retail service studies, tariffs, special contracts, and transmission studies. Kentucky EPIC/University of Kentucky CAER, 2026-06-04
  • LG&E/KU data-center load pipeline increased after the stale file date: EPIC reports that LG&E/KU told the PSC in March 2026 it had 29 potential data-center projects, with 11 totaling about 3.5 GW assigned at least a 50 percent probability of proceeding. PPL’s first-quarter investor materials put prospective data-center demand in LG&E/KU territory at 11.9 GW through 2032, within a 12.9 GW total economic-development pipeline. These are requests and prospects, not a forecast that all load will interconnect. Kentucky EPIC/University of Kentucky CAER, 2026-06-04 PPL Corporation first-quarter presentation, 2026-05-08
  • EKPC active requests are much larger than its approved tariff threshold: EPIC reports that EKPC had 11 active data-center projects seeking more than 10 GW of power. Kentucky EPIC/University of Kentucky CAER, 2026-06-04
  • Project-specific transmission paths are emerging: TeraWulf’s Hawesville site has on-site energized substation infrastructure and high-voltage lines, while the Muskie campus is tied to a Kentucky Power 345 kV substation connected to the 765 kV network. TeraWulf, 2026-02-02 TeraWulf, 2026-05-26
  • FERC acted on large-load integration in June: On June 18, FERC issued separate show-cause orders to PJM, MISO, SPP, CAISO, ISO-NE, and NYISO, requiring them to justify or reform tariff rules for data centers and other large loads and to file generation-adequacy reports within 30 days. The targeted proceedings address transmission-study processes, cost shifting and transparency, co-location, flexible-load service, and proximate generation. This replaced the earlier “action expected by end of June” status, but it did not create one immediately effective nationwide retail-interconnection rule; Kentucky PSC authority over retail service remains separate. Federal Energy Regulatory Commission, 2026-06-18

3. Ratepayer protection / large-load tariffs (PSC)

  • EKPC Rate DCP remains the state’s clearest data-center tariff model: The PSC approved Rate DCP in Case No. 2025-00140 for eligible data centers with expected or actual peak demand of at least 15,000 kW and expected or actual monthly load factor of at least 60 percent; all Rate DCP customers must have PSC-reviewed special contracts. Kentucky PSC Case No. 2025-00140 order, 2025-10-30
  • EKPC dedicated-resource trigger: For data-center loads exceeding 250 MW, the PSC-approved Rate DCP framework requires one or more dedicated resources under the Dedicated Resource Rider to help minimize risk to non-data-center loads. Kentucky PSC Case No. 2025-00140 order, 2025-10-30
  • LG&E/KU Rate EHLF approved after February 1, 2026: The PSC approved KU’s Rate EHLF with modifications in the February 16, 2026 base-rate order, lowering the minimum contract capacity threshold from 100 MVA to greater than 50 MVA, applying the tariff only to new customers, adding anti-avoidance aggregation language, requiring EHLF electric service agreements to be filed with the Commission, and adding renewable-energy commitment language. Kentucky PSC Case No. 2025-00113 order, 2026-02-16
  • Big Rivers/Kenergy/TeraWulf agreement remains pending, not approved: Big Rivers filed a retail electric service agreement with Justified DataPower LLC on April 14, and the PSC opened Case No. 2026-00115. The July 10 procedural order required the utility or an intervenor to request either a hearing or decision on the written record by July 28; a local public-comment meeting was set for July 27 and moved to Hancock County High School on July 14. No final order had issued by July 17. Kentucky PSC Case No. 2026-00115 docket, 2026-07-14
  • Hawesville agreement cost-allocation structure: The Big Rivers/Kenergy/TeraWulf handout says the customer would bear MISO energy and capacity risks and all costs associated with Big Rivers’ obligations, with no market risk to Big Rivers or Kenergy; the proposal is for a 482 MW project with a 15-year initial term and five-year rolling extensions under Big Rivers’ LICX tariff. Kentucky PSC informal-conference handout, 2026-06-02
  • Kentucky Power large-load service for Muskie: The PSC handout and TeraWulf’s announcement state that Muskie will be served by Kentucky Power under Industrial General Service / Tariff I.G.S. special conditions for new load over 150 MW. Kentucky PSC informal-conference handout, 2026-06-02 TeraWulf, 2026-05-26
  • HB 593 did not enact statewide ratepayer rules: HB 593 would have required contracts, tariffs, service studies, nonrefundable fees, and cost-allocation prohibitions for data-center utility service, but it stalled in the Senate and was not enacted. Kentucky LRC HB 593 record, 2026-06-05
  • Other 2026 statewide utility proposals also died: HB 544 would have required a PSC-approved tariff or contract for aggregate data-center demand above 100 MW and assigned data-center-specific infrastructure costs to those customers. SB 330 would have required utilities to publish aggregate information about data-center demand and effects while protecting project-specific confidential information. Neither advanced out of committee. Kentucky LRC HB 544 record, 2026-07-10 Kentucky LRC SB 330 record, 2026-07-10

4. Generation adequacy (new resources, storage, shortfalls)

  • Data centers now dominate the load-growth uncertainty frame: EPIC concludes that Kentucky’s central policy question is how to integrate major data-center loads while protecting existing ratepayers and reliability, and it highlights LG&E/KU’s 3.5 GW higher-probability pipeline plus EKPC’s more than 10 GW of active requests. Kentucky EPIC/University of Kentucky CAER, 2026-06-04
  • LG&E/KU generation approvals are conditioned on load materialization: EPIC notes the PSC’s October 2025 approval of LG&E/KU’s Brown 12 and Mill Creek 6 combined-cycle units was conditioned on the utilities’ commitment not to proceed if the data-center load does not materialize. Kentucky EPIC/University of Kentucky CAER, 2026-06-04
  • On-site backup generation is a planning issue, not a substitute for utility capacity: EPIC notes that hyperscale data centers’ Tier III/Tier IV reliability requirements imply substantial on-site backup generation or battery capability, which does not replace utility capacity but may affect emergency operations and load behavior. Kentucky EPIC/University of Kentucky CAER, 2026-06-04
  • EKPC’s completed IRP quantified a one-gigawatt data-center case: Commission Staff’s June 1 report found that adding a hypothetical 1 GW load at a 95 percent load factor produced two 745 MW 2-on-1 F-class combined-cycle units as the least-cost solution. Staff found Rate DCP’s separation of data-center costs reasonable and directed EKPC’s next IRP to include a dedicated data-center section covering request counts, load, development status, and associated generation, transmission, tariff, and regulatory needs. The PSC closed Case No. 2025-00087 on July 6 and set the next IRP deadline for April 1, 2028. Kentucky PSC Staff Report, Case No. 2025-00087, 2026-06-01 Kentucky PSC Case No. 2025-00087 docket, 2026-07-06
  • LG&E/KU began an SMR feasibility collaboration: On April 30, LG&E/KU and X-energy announced early feasibility work on possible small modular reactor deployment for long-term Kentucky grid reliability and large-load customers including data centers. No site, capacity, construction commitment, or PSC application was announced. PPL Corporation/LG&E and KU, 2026-04-30

5. Utility load forecasts (data center demand in IRPs and proceedings)

  • LG&E/KU 2024 IRP scenarios remain relevant but understated against 2026 pipeline chatter: The stale file’s 1,050 MW Mid and 1,750 MW High data-center assumptions by 2032 remain historically accurate, but EPIC’s June 2026 update shows a larger near-term pipeline of 29 potential projects, 11 higher-probability projects totaling about 3.5 GW, and investor-discussed total prospective demand of about 12 GW. Kentucky EPIC/University of Kentucky CAER, 2026-06-04
  • Kentucky’s first hyperscale project is utility-served: EPIC reports the PowerHouse/Poe Louisville campus secured initial LG&E power capacity of 335 MW with near-term expansion to 402 MW and a 130 MW first phase targeted for late 2026. Kentucky EPIC/University of Kentucky CAER, 2026-06-04 LG&E, 2025-01-16
  • Hawesville’s executed lease revised the customer ramp: The June PSC handout modeled a 482 MW gross-service ramp beginning in September 2027. TeraWulf’s July 6 Form 8-K then disclosed a 20-year Anthropic lease for approximately 401 MW of critical IT load, with delivery in phases from the second half of 2027 through early 2028. The lease strengthens project commitment but does not substitute for PSC approval of the Big Rivers service agreement. TeraWulf SEC Form 8-K, 2026-07-06 Kentucky PSC Case No. 2026-00115 docket, 2026-07-14
  • Muskie is later-dated but larger: TeraWulf says Muskie should support more than 1 GW over time, with 500 MW ramping beginning in the second half of 2028 and an additional 500 MW targeted for the second half of 2030. TeraWulf, 2026-05-26
  • Pikeville is preliminary and smaller: Pikeville’s review materials describe an initial 25-30 MW computing deployment at the Kentucky Enterprise Industrial Park, with developer interest in 75-100 MW if additional power capacity becomes available. City of Pikeville review details, 2026-06-05

6. Behind-the-meter / co-location / direct PPAs

  • EKPC allows dedicated-resource options but keeps PSC contract review: Rate DCP contemplates dedicated resources supplied by EKPC or the data center, bilateral purchases, or a combination, with dedicated resources required above 250 MW and special contracts subject to Commission review. Kentucky PSC Case No. 2025-00140 order, 2025-10-30
  • Franklin/Simpson proposal includes on-site power manufacturing: The Franklin preliminary plan involves three 200,000-square-foot facilities with on-site power manufacturing, and the litigation challenge is partly tied to whether that use was properly treated under zoning rules. WKYU, 2026-03-04 WBKO, 2026-04-06
  • TeraWulf’s Kentucky sites are structured around utility/transmission access rather than a disclosed Kentucky behind-the-meter generation build: The Hawesville release emphasizes existing transmission and substation infrastructure and the PSC handout uses a MISO pass-through service structure; the Muskie release emphasizes Kentucky Power transmission service and a 345 kV substation connected to the 765 kV network. TeraWulf, 2026-02-02 Kentucky PSC informal-conference handout, 2026-06-02 TeraWulf, 2026-05-26
  • Two off-grid/nuclear concepts are preliminary, not approved supply: Riot Platforms’ operating 60 MW McCracken County Bitcoin-mining site announced an exploratory partnership that could eventually use a small modular reactor. In Letcher County, Diversified Energy and Maverick Holdings were evaluating a roughly 100 MW off-grid natural-gas plant at Gateway Industrial Park to attract a future data center or other industrial customer. Neither source identifies an approved generating facility or executed data-center power contract. WKMS, 2026-05-06 WSIP FM, 2026-07-16

7. Transmission constraints and planned upgrades

  • Project-level transmission studies are the operative record: EPIC states that standardized large-load demand forecasting and grid-impact assessment remain areas needing more work, because Kentucky utilities in PJM, MISO, and outside RTOs use different approaches to determine upgrade cost causation. Kentucky EPIC/University of Kentucky CAER, 2026-06-04
  • Hawesville leverages legacy industrial infrastructure: TeraWulf’s Hawesville acquisition includes multiple high-voltage transmission lines, an on-site energized substation, direct connection to the regional transmission network, and about 480 MW of existing power availability. TeraWulf, 2026-02-02
  • Muskie requires Kentucky Power transmission construction: TeraWulf says Kentucky Power is constructing a 345 kV substation connected to the existing 765 kV transmission network to support the full 1+ GW campus. TeraWulf, 2026-05-26
  • EPIC guide for local officials emphasizes written cost commitments: EPIC’s June 2026 guide advises officials to ask whether there is a signed agreement requiring the data center to pay for new substations, power lines, or generation built specifically for the project before public commitments are made. Kentucky EPIC guide, 2026-06-04
  • LG&E/KU reiterated financial safeguards: In June the utilities said large loads are subject to a special rate class, upfront financial commitments, and long-term contracts intended to protect existing customers while generation and grid upgrades are planned. This is a utility statement rather than a new PSC ruling. LG&E and KU, 2026-06-22

Notes on methodology

  • Sources were prioritized from Kentucky PSC orders and dockets, Kentucky legislative records, EPIC/University of Kentucky CAER reports, city/county records, utility/company releases, and local reporting where primary documents did not fully describe meeting outcomes or litigation.