Employee spotlight: Derek Rahn, manager of Business and Economic Development

Derek Rahn, manager of Business and Economic Development, has been a part of the LG&E and KU family since 2002, when he was hired as a student engineer in Generation Services. During his tenure, he served as a group leader in Operations, manager of Policy and Tariff for Transmission and manager of Revenue Requirement as part of the Rates and Regulatory team. 

Originally from Houston, Texas, Rahn earned a Bachelor of Science degree in Electrical Engineering with a minor in mathematics from the University of Kentucky and master’s in business administration from Bellarmine University. 

Derek sat down to talk about his role with the company and the part LG&E and KU play in economic development in the communities we serve.

What is the role utilities play in economic development and why is it important for them to be at the table when attracting new business?

Utilities play a foundational, enabling role in economic development, often determining whether a project moves forward, where it is located, and how quickly it can scale. More specifically:

• We provide essential infrastructure. Businesses depend on reliable electric, gas, water, and related services. Simply put, if the utility capacity isn’t there, the project cannot move forward.
• We enable site readiness and competitiveness. Utility access and capacity directly influence speed to market, upfront costs, and overall feasibility. Early utility engagement helps identify constraints, plan infrastructure needs, and avoid costly redesigns. As a result, sites with clear, committed utility solutions consistently win more projects.
• We support large-load and strategic industries. From advanced manufacturing to data centers and healthcare, utilities play a key role in determining what types of projects a region can support. We don’t just serve growth—we help shape it.
• We help drive speed to market. In today’s environment, timing is critical. Projects often select locations where utilities can deliver infrastructure quickly and predictably, making early coordination essential.

Could you talk about LG&E and KU’s Opportunity Kentucky grants and what that program has done for the communities we serve?

LG&E and KU’s Opportunity Kentucky grant program is a key way we support the long-term economic vitality of the communities we serve. At its core, the program is designed to help communities compete for and win economic development projects by funding strategic site readiness and infrastructure improvements that might not otherwise move forward.

Since its inception, the Opportunity Kentucky program has directly contributed to seven project announcements across our service territory, representing approximately $1.5 billion in capital investment and more than 2,200 new jobs. Just as importantly, the program has demonstrated a strong return on investment—for every dollar invested, we have helped generate more than $1,700 in capital investment in Kentucky.

While Opportunity Kentucky has played an important role, it has also complemented broader statewide efforts. In particular, the Kentucky Product Development Initiative (KPDI), which LG&E and KU partnered to help establish, has delivered significant additional impact within our territory. Through that initiative, communities we serve have secured 14 project announcements totaling $5.8 billion in capital investment and more than 7,300 new jobs.

Together, these programs highlight how targeted, strategic investment in site readiness and infrastructure can unlock transformational growth, strengthen communities, and position Kentucky to compete successfully for high-impact economic development opportunities well into the future. 

What makes LG&E and KU’s service territory attractive to new or expanding businesses?

LG&E and KU’s service territory is attractive to new and expanding businesses because it brings together reliability, capacity, strategic location, and strong partnerships, all of which are critical in today’s highly competitive site selection environment.

First and foremost, our mission is to provide safe, affordable, reliable, and sustainable energy to our customers while delivering long-term value. For most large employers, particularly in advanced manufacturing and data centers, reliable power is the top site selection criterion, and it’s an area where we are well-positioned.

From a reliability and capacity standpoint, our long-term planning ensures we can scale with growth as we fulfill our obligation to serve. In 2025, LG&E and KU received approval from the Kentucky Public Service Commission (KPSC) to add more than 1.2 gigawatts of new generation capacity. This includes two highly efficient 645-megawatt natural gas combined-cycle units—Mill Creek 6 in Louisville and E.W. Brown 12 in Harrodsburg—as well as environmental upgrades at Ghent Unit in Carroll County. These investments position us to reliably serve both existing customers and the record level of economic development activity we’re seeing across Kentucky.

Our location is another major advantage. We are within a day’s drive of a significant portion of the U.S. population and have strong access to interstates, rail networks, the Ohio River, and major air cargo hubs like UPS Worldport in Louisville. This connectivity makes our region especially attractive for manufacturing, logistics, and distribution operations.

Finally, what truly differentiates our territory is our strong economic development partnerships. We are active participants alongside state and local organizations, including groups like the Kentucky Cabinet for Economic Development and the Kentucky Association for Economic Development. Programs such as Opportunity Kentucky and our support of KPDI demonstrate our commitment to invest alongside our communities, enhance site readiness, and position regions to respond quickly and credibly to opportunities.

Data centers are a big topic right now. How is LG&E and KU balancing business attraction of large load customers while also protecting all customers and ensuring safe, reliable power?

LG&E and KU recognize that data centers and other large-load customers represent a significant economic opportunity, but growth must be managed in a way that protects reliability, affordability, and fairness for all customers. Our approach is rooted in thoughtful planning, regulatory oversight, and disciplined execution.

We take a long-term, system-wide view when evaluating these opportunities—ensuring we have the right infrastructure, including transmission and generation, in place before committing to serve the load. Each project goes through rigorous technical and economic analysis so we can confidently deliver power safely and reliably without impacting existing customers.

Equally important, we structure these projects so that large-load customers pay their fair share of the infrastructure required to serve them. Through mechanisms like reimbursement agreements and tariff structures, including our Extremely High Load Factor tariff, we ensure this growth is additive to the system—not a burden on current ratepayers.

For many of these customers, particularly data centers, that also means developing dedicated, transmission-level solutions designed to meet their needs while preserving the integrity of the broader grid.

Ultimately, it is about balance, welcoming new investment and job creation while maintaining the high level of service our customers expect every day. When done right, these projects not only benefit the individual customer, but also strengthen the overall system, help mitigate rate volatility over time, and create new opportunities for future growth across our communities.

What is an aspect (or aspects) of your job that you really enjoy?

One of the aspects I enjoy most about my role is the opportunity to bring together people, projects, and communities to create something meaningful and long-lasting. While I may “geek out” with my engineering hat on at times, it really comes from a deeper passion—helping others succeed.

Economic development sits right at the center of that passion, both internally and externally. I have the opportunity to work alongside our PPL team and community partners to attract new employers, support job creation, and help move projects from concept to reality.

Being part of that process, especially on large/complex projects where there are a lot of moving pieces that has helped me lose hair, is incredibly rewarding. Seeing those efforts translate into real outcomes for communities and customers is what I find most fulfilling.