Renewable Power Agreement

Business customers can purchase energy from a renewable energy generator.

We understand that many of our large customers have sustainability objectives and want to diversify their power supply. Our Green Tariff includes an option for our largest customers to buy energy sourced from new renewable projects and have it delivered to them through our transmission and distribution system. 

Customers on the Time of Day Secondary (TODS), Time of Day Primary (TODP), and Retail Transmission Service (RTS) rate schedules may be eligible to enter into a special contract that allows them to purchase the electrical output and all associated environmental attributes from a renewable energy generator. This contract would be made bilaterally with the Company and is subject to approval by the Kentucky Public Service Commission.

Requirements: 

1. A customer contracting for a minimum monthly billing load of 10 MVA (or MW as is appropriate). 
2. Any agreement must be at least 10 MW, capped at a system cumulative 100 MW, for a term equal to the generation purchase agreement. 
3. Agreement must be for energy delivered to the Company’s transmission system. Agreement will include all costs for renewable energy to be delivered to the LG&E and KU transmission system. 
4. Energy serving this option must be generated from a renewable resource developed on or after the Kentucky Public Service Commission special contract approval date.

This offering is part of LG&E and KU's Green Tariff.

LG&E and KU proactively met with their customers to understand and find solutions to sustainability objectives. During these discussions, they learned about renewable goals set forth by Dow (NYSE: DOW), which has a silicones manufacturing site in Carrollton, and Toyota Motor Manufacturing, Kentucky, Inc., which operates one of Toyota’s largest global manufacturing sites in Georgetown. Below is the solution which was recently approved in full.

Objectives 

Dow had a global 2025 Sustainability Goal to secure at least 750 MW of clean energy. Toyota had a goal to support Challenge 3 of the global Toyota Environmental Challenge 2050 to eliminate all carbon emissions from manufacturing by the middle of the century. 

Solution 

To support these objectives, in early 2019, the utilities issued a request for proposals for up to 200 MW of renewable energy. The Rhudes Creek Solar facility proposed by ibV Energy Partners was selected as the most cost-effective solution. 
    
To help Dow and Toyota reach their sustainability goals, KU entered into two separate renewable power agreements (RPAs) with the two customers. KU also entered into a power purchase agreement (PPA) with Rhudes Creek Solar, LLC, a wholly owned entity of ibV Energy Partners, for energy to be generated from a new 100-megawatt solar photovoltaic facility to be built in Hardin County. The facility uses state-of-the-art technology to produce the highest amount of energy possible for its size.

Results

The utilities will supply Toyota with 50% of the solar facility’s solar energy output, Dow with 25%, and the remaining 25% will be used to serve all LG&E and KU electric customers. Due to the variable nature of the renewable energy, to ensure reliability, all customers will continue to be served by LG&E and KU’s other generating resources. The 20-year contracts lock in a flat price per kilowatt hour that is expected to translate into cost savings for customers over the life of the agreements. The solar facility is expected to be completed and commercially available in late 2022. LG&E and KU partnered with Dow and Toyota to collectively tell this successful renewable energy story through a variety of paid, owned and earned communications. 

Testimonials 

“Dow continues to work closely with its utilities suppliers in Kentucky and throughout the world to advocate for and support cleaner, lower emission power for our operations. We are pleased that our agreement with KU brings us closer to our global 2025 Sustainability Goal to secure at least 750 MW of clean energy, while benefiting Kentucky residents with increased access to clean energy and a stronger foundation for sustainable economic growth.” 
— Edward Stones, Global director of Dow’s Energy and Climate Change business 

“We are pleased to enter into an agreement with LG&E and KU to build and provide renewable energy for our largest manufacturing facility in the world. This project will provide positive economic and environmental benefits to a community where we’ve been happy to be doing business for 34 years. Also, it supports Challenge 3 of the global Toyota Environmental Challenge 2050 to eliminate all carbon emissions from manufacturing by the middle of the century.” 
— Kevin Butt, Director of Environmental Sustainability, Toyota Motor North America

Please contact your LG&E and KU representative or the Emerging Business department to discuss your options. We look forward to partnering with you to meet your sustainability goals.