PPL Pulls Back on New Natural Gas and Solar Projects

PPL Corporation (NYSE: PPL  ) announced yesterday that it is putting the brakes on previously proposed plans for a 700 MW natural gas plant and 10 MW solar facility in Kentucky.

The utility is requesting that the Kentucky Public Service Commission put its regulatory approvals on hold as PPL Corporation assesses the recent news that nine of its municipal customers are terminating their wholesale power contracts, effective 2019.

Collectively, the nine municipal utilities account for around 320 MW of load, a full 4% of its Kentucky generation. Since the need for new natural gas and solar plants were based partially on energy forecasts through 2035 that included these utilities, PPL is backpedaling on its previous push.

"We have been long-term partners with our municipal customers, providing them some of the lowest-cost energy in the country," said David Sinclair, PPL vice president of Energy Supply and Analysis. "We extended an offer to continue discussions and we remain hopeful that we can come to a mutually acceptable resolution. However, if they choose to move forward with the termination of their contracts and find alternative sources of energy, that is their prerogative, and we must continue to provide the lowest-cost energy to our remaining customers."

PPL Corporation has asked for 90 days to reassess, as which time it will be able to make a "prudent decision about [our] generation investments."

Editor's note: A previous version of this  article contained an incorrect year for when the termination of wholesale power contracts takes effect.


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  • Report this Comment On May 07, 2014, at 10:09 AM, TMFJLo wrote:

    Thank to @mixquaker for catching an incorrect year in a previous version of this article, the error has been fixed.

    Fool on,

    TMFJLo

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