So far, the 21st century has been a challenging time for the power generation industry, with the future of energy still not certain. New technologies aimed at replacing fossil fuels or making existing energy sources more efficient seem to emerge every day, and utilities need to stay ahead of the curve or risk being left behind in the energy marketplace of the future. That is why Louisville Gas & Electric Company (LG&E) and Kentucky Utilities Company (KU) have started a number of innovative new projects and continue to work with leading research entities to develop new technologies. Vice President of Transmission and Generation Services John Voyles says the company is committed to exploring all potential avenues for providing its customers throughout Kentucky and Virginia with the most efficient and cost-effective energy solutions possible. 

LG&E and its sister company, KU, are part of the PPL Corp. family of companies and serve in total about 1.2 million customers in more than 90 counties in Kentucky and 5 counties in Virginia. LG&E serves customers in Louisville and 16 surrounding counties with natural gas and electricity. The company has more than 321,000 natural gas and more than 397,000 electric customers within its service area. LG&E has served Louisville since 1838, when it was founded as the Louisville Gas and Water Company to provide gas to streetlamps. The company added electricity to its portfolio in 1890, and in 1913 the company became LG&E through a merger of a number of companies. KU was founded in 1912 and serves 543,000 customers in 77 Kentucky counties and 5 counties in Virginia. “Creating and delivering energy in real-time is a challenge we’ve met – safely and reliably – for more than 100 years,” Voyles says. “That focus remains unchanged.” 

Voyles brings more than 39 years of experience in the electric utility industry to his position, which he has held since 2008. He began his career as a mechanical engineer with LG&E in 1976, and since then has held numerous leadership positions within the company, including being the first director of environmental excellence. 

Exploring Options

LG&E and KU’s service area lies squarely in coal country, and approximately 95 percent of the company’s energy is produced using coal, with natural gas and hydroelectric power making up the remaining 5 percent. Kentucky’s commitment to least-cost generating supply and the state’s lack of a renewable portfolio standard means there is no mandate to install alternative energy sources, but the company nevertheless has been forward-thinking and exploring all options that could potentially broaden the supply sources for customers. Voyles says LG&E ad KU have looked into wind generation in the past, but it was not a least-cost option for customers.

Solar generation, while still not the lowest cost option today to meet customers’ needs on a large scale, represented a reasonable opportunity for LG&E and KU to gain experience on a smaller scale. The company began work on what will be the state’s largest solar generation facility. The 10-megawatt facility will be located at the company’s E.W. Brown Generating Station in Mercer County, and is expected to be online in 2016. Voyles says the solar facility will represent only a tiny fraction of the energy LG&E and KU produce in 2016, but the project has merit because it gives the company a foothold in renewable resource options for the future. 

“This site was never envisioned to be a significant energy supply resource for our customers, but that being said, solar does have a niche role in energy supply across the country,” Voyles says. “It’s growing, and we have a few residential and smaller customers who have an interest themselves and have put solar units on their properties. It will grow over time as it has in many markets.”

“Part of what we thought was if more solar is added across our system, ‘How can we gain some experience on how it performs?’” Voyles adds. “The new solar facility will provide our company with valuable experience in how solar generation affects operating the electric grid.  It also continues our commitment to explore future energy supply options, especially in how it relates to potential federal regulations.”

“We know that the EPA has proposed regulations that will begin to change the profile of carbon emissions across the country, and solar energy can certainly contribute to that objective,” Voyles says. 

Pilot Carbon Capture Program

Another innovative and future-focused project at the E.W. Brown Generating Station is Kentucky’s first-ever megawatt-scale carbon capture pilot unit. This 2-megawatt thermal post-combustion carbon dioxide system is being funded almost entirely by the U.S. Department of Energy (DOE) and Voyles says LG&E and KU were proud to offer the DOE the use of the E.W. Brown Generating Station to install it for testing.

“The aim of that pilot plant is to figure out how to reduce the energy penalty from a carbon capture process,” Voyles says. “The Department of Energy is very interested in that.” Based on the data the DOE collects from this pilot program, it will better understand how to integrate a carbon capture system with an existing power plant and potentially aid the technology development toward commercial-scale carbon capture systems. 

Major Improvements

In addition to these pilot programs, LG&E and KU are in the middle of the largest construction phase in the company’s history. Voyles says the company is spending approximately $6 billion between now and 2018 to make substantial environmental and infrastructure improvements throughout the company’s entire system. “We are challenged to continue to meet customers’ increasing energy demand, keep our rates among the lowest in the region, and at the same time comply with federal regulations to further reduce our environmental impact,” Voyles says. 

As part of this initiative, LG&E and KU will retire approximately 13 percent of its existing coal-powered units, which currently totals approximately 8,000 megawatts of capacity. The bulk of the retired capacity is being replaced by the state’s first-ever natural gas combined-cycle generating unit, which will be installed at the Cane Run facility in Jefferson County. This new facility is expected to generate about 640 megawatts. 

When the new natural gas combined-cycle unit at Cane Run becomes commercially available, the company anticipates the percent of energy produced from natural gas capacity will grow from the current 4-5 percent to approximately 15 percent or more at the current natural gas prices.   

Among other improvements being made across the system, the company will be installing new flue gas desulfurization scrubbers at its Mill Creek facility and adding fabric filter bag houses to 10 coal-fired units at 4 different locations. In 2010, the company added a new coal-fired unit at its Trimble County Generating Station. Trimble County Unit 2 was built with all state-of-the-art clean coal technology available for coal-fired power plants and received an Advanced Coal Income Tax Credit granted by the Energy Policy Act of 2005. In addition, the company also is rehabilitating its eight generating units at its Ohio Falls Hydro Station, boosting total output by 27 percent.

Out in Front

The improvements being made across LG&E and KU’s system not only help the company meet the future needs of its customers, but they continue the company’s dedication to leading the industry. The company is among the top utilities in the nation, earning numerous awards for safety. In 2014, the company earned three Kentucky Governor’s Safety and Health Awards, the Edison Electric Safety Achievement Award, the EEI Safety Achievement Award, the Kentucky Gas Association Accident Prevention Award, the American Gas Association Safety Achievement Award and the American Gas Association Fleet Safety Award. 

The company also ranks among the best utilities in the nation in terms of financial performance, according to the Federal Energy Regulatory Commission. 

Voyles says the company is committed to being a stalwart corporate citizen. “LG&E and KU have a steadfast and unwavering commitment to the communities we serve,” he says. “Over the years, corporate citizenship and community involvement have played an integral role in our tradition and culture.”

“One such example is the LG&E and KU Power of One annual giving campaign,” Voyles continues. “Since 2005, the employee-driven campaign has raised nearly $17 million through payroll deductions, event fundraisers, direct-to-charity donations and support from the LG&E and KU Foundation to provide needed benefits to a variety of community agencies.”