Farmers RECC says no formal power application filed for proposed Barren County data center
Farmers Rural Electric Cooperative Corporation and East Kentucky Power Cooperative released a joint statement clarifying that no formal power application has been filed for a proposed data center project in Barren County, despite ongoing litigation over Cave City's data center moratorium. Kentucky Industrial Alliance LLC is suing Cave City, claiming the moratorium was improperly enacted after the company had already submitted development plans. The utilities emphasize that data center projects must adhere to a specific tariff requiring them to cover their own costs.
Farmers Rural Electric Cooperative Corporation and East Kentucky Power Cooperative issued a joint statement this week to clarify the energy infrastructure status of a proposed Barren County data center project, amidst ongoing litigation concerning Cave City's data center moratorium. The cooperatives stated that while they are prepared to serve large-scale data center developments, no formal project application has yet been filed for the Barren County site.
This clarification adds to an existing lawsuit filed by Kentucky Industrial Alliance LLC against Cave City. The company alleges that Cave City improperly enacted a moratorium on data center development after Kentucky Industrial Alliance had already submitted development plans on May 11 and entered an option agreement with an unnamed developer for a data center on Doyle Avenue. The lawsuit contends that the city's subsequent moratorium unlawfully blocked a project already in motion.
While not directly addressing the lawsuit, the utilities' statement outlined requirements for data center projects seeking service. Under their Data Center Power tariff, approved by the Kentucky Public Service Commission, any project must enter into a three-party contract between the local cooperative, East Kentucky Power Cooperative, and the developer. This tariff mandates that developers detail anticipated power usage, infrastructure needs, and cost coverage, ensuring existing ratepayers are not burdened.
The utilities reiterated their support for economic development, citing potential benefits like job creation and tax revenue, but stressed the importance of protecting existing ratepayers. The lawsuit against Cave City remains active, with an initial hearing scheduled for July 20.