East Kentucky Power planning natural gas expansion including a conversion of coal-fired plants

An aerial photo of the coal-fired Hugh L. Spurlock station in Mason County. The utility plans to convert its generation units to co-fire natural gas. (Screenshot)

A Kentucky electric utility is planning a significant expansion of natural-gas fired power including the conversion of existing coal-fired plants, a move that mirrors similar plans by other electric utilities serving the state.

East Kentucky Power Cooperative (EKPC) leaders at a Somerset gathering Thursday announced their plans to build two new natural gas-fired power plants and convert its two existing coal-fired power plants — one of two power generation units at the John Cooper Sherman Power Station in Pulaski County and all four units at the Hugh L. Spurlock Power Station in Mason County — to "co-fire" natural gas. That means the plants could burn both coal and natural gas. The converted Spurlock units could burn up to 50% natural gas, while the converted Sherman unit could burn entirely natural gas.

An EKPC news release says the conversions are an effort to abide by Biden administration rules that aim to curb nearly all climate-warming greenhouse gas emissions from existing coal-fired power plants and new natural gas-fired power plants, thereby protecting the utility's "most dependable electric-generating resources." EKPC is an ongoing federal lawsuit against the rules.

"EKPC is blazing a bold path to ensure reliable, cost-competitive and sustainable electricity for rural Kentucky in coming decades," said EKPC CEO and President Anthony "Tony" Campbell in a statement. "EKPC is building for the future, protecting reliable plants, hedging against high energy costs and reducing greenhouse gas emissions."

The new natural gas plants include an approximately $1.3 billion, 745-megawatt combined cycle plant located at the John Cooper Sherman Power Station site, which utility leaders say will help meet growing power demand that is anticipated to exceed the utility's current generating capacity by 2030. That plant is anticipated to be operational by 2030 . Another approximately $500 million, 214-megawatt plant that uses a different natural gas engine in Casey County is currently proposed before the Kentucky Public Service Commission, the state's utility regulator that approves or denies utility requests to build new power plants. An EKPC release states the plant would be constructed by late 2028 and help provide power during a peak in electricity demand or when solar installations are seeing reduced electricity generation.

The utility is also planning on doubling its investment into demand-side management programs to reduce electricity usage at 16 power distribution cooperatives by 69,792 megawatt-hours and reduce the utility's peak power demand by 38 megawatts in 2030. An EKPC spokesperson said it would be presenting its full plans for the new plants and programs to the PSC in the coming weeks.

EKPC's announcement comes as a major shift in federal climate and energy policy is likely next year with the arrival of President-elect Donald Trump's administration. Energy analysts believe the new administration is likely to reverse the Biden administration rules curbing greenhouse gas emissions from power plants, among other rules that analysts say are needed to meet the United States' commitments to address climate change.

Nick Comer, an EKPC spokesperson, said in a statement the utility believes the Trump administration will take a "different approach to regulating greenhouse gas emissions" but that it's not clear how that would look or how soon regulatory changes could happen. Regardless, Comer said it was "prudent" to maintain flexibility with its coal-fired power plants.

The natural gas expansion also follows similar moves to move to natural gas-fired power being made by Louisville Gas and Electric and Kentucky Utilitiesthe Tennessee Valley Authority . EKPC hailed last month a federal investment of up to $1.4 billion to add 757 megawatts of solar power and improve electric transmission.

Natural gas primarily consists of the potent greenhouse gas methane, and burning it for electricity releases less carbon dioxide than burning coal, but some environmentalists argue that methane leaks during transportation and production of natural gas are canceling out progress made on curbing greenhouse gas emissions by phasing out coal-fired power.

Last year, the United Nations' leader called for developed nations to move to carbon-free electricity generation by 2035 and phase out coal-fired power by 2030 in order to avoid the worst harms from climate change. A United Nations report last month found the world was on track for catastrophic warming by the end of the century because of the unabated burning of fossil fuels.

Campbell, the EKPC CEO and President, previously told the Lantern when asked about the United Nations' call for action that zero-emissions renewable energy (like solar panels, which are increasingly paired with battery storage systems) hadn't "evolved enough" and that reliable power was needed.

The International Energy Agency considers solar and wind power to be the cheapest form of electricity in most of the world, and utilities across the United States are investing considerably in solar installations and battery storage systems.

The EKPC release states the utility would still be on track to reduce its carbon dioxide emissions 35% by 2035 with the additions of the natural gas plants.