The Kentucky Public Service Commission (PSC) on Monday approved the cancellation of a power plant that East Kentucky Power Cooperative, Inc. (EKPC) had begun constructing in Clark County.
In a related case, the PSC also permitted EKPC to establish a regulatory asset for consideration of future recovery through rates of the $157.4 million that it has already spent on the plant. EKPC will attempt to sell or put to other use the plant components and materials that it has already purchased, thus reducing the amount it will seek to recover through rates.
Both the plant cancellation and the establishment of the regulatory asset are addressed in a settlement reached by EKPC with other parties to the proceedings. They include the Kentucky Office of Attorney General, Gallatin Steel Co., and Wendell Berry, John Patterson and John Rausch, who are member-customers of rural electric cooperatives in the EKPC system.