Kentucky Power to ask state regulator to approve new gas plant for EKY data center
Kentucky Power plans to ask the Kentucky Public Service Commission to approve a 760-megawatt natural gas plant in Lawrence County to supply electricity for TeraWulf's Muskie Data Campus near Grayson. TeraWulf will cover the plant's financing costs and has agreed to offset $100 million in residential winter heating bills over 10 years.
Kentucky Power is replacing its proposed 450-megawatt combustion turbine at the Big Sandy site with plans for a 760-megawatt combined-cycle natural gas plant in Lawrence County. The utility intends to submit a new filing to the Kentucky Public Service Commission seeking approval for the generation project and an energy service agreement with TeraWulf.
The plant is expected to begin operating by 2031 and support TeraWulf's planned Muskie Data Campus near Grayson, which could require 1 gigawatt of electricity. TeraWulf would finance the new plant, while an agreement with Kentucky Power would provide $100 million in relief for residential winter heating bills over the first decade. The arrangement follows Gov. Andy Beshear's executive order barring utilities from shifting data center costs to residential customers.