During 2012 and 2013, Kentucky Utilities, doing business in Virginia as Old Dominion Power, anticipates incurring up to $1.45bn in construction costs for environmental controls and projects at its existing generation stations and for the construction of a new jointly-owned generating unit.
KU/ODP, a unit of PPL Corp. (NYSE: PPL), filed a July 5 application with the Virginia State Corporation Commission for approval of new financing related to these projects.
The projects named are:
- The Kentucky Public Service Commission on May 3 granted a Certificate of Public Convenience and Necessity and a Site Compatibility Certificate to construct a new 640-MW natural gas combined cycle combustion turbine unit at the coal-fired Cane Run plant in Jefferson County, Ky.
- In a December 2011 order, the KPSC approved the company’s 2011 Amended Environmental Compliance Plan and granted it Certificates of Public Convenience and Necessity to construct particulate matter control systems at the coal-fired Brown Unit 3 and at Ghent Units 1-4 in Kentucky.
- In a December 2009 order, the Kentucky commission, among other actions, granted the company a Certificate of Public Convenience and Necessity to construct a new landfill at the its coal-fired Ghent station in Carroll County, Ky.
KU/ODP wants authority from the Virginia commission to incur debt in the form of First Mortgage Bonds in a principal amount not to exceed $300m. KU/ODP further requests authority to increase the amount of its multi-year revolving line of credit up to an additional $100m. In addition, because an affiliate may serve as a “pass-through” between KU/ODP and the counterparty to a hedge agreement related to the First Mortgage Bonds, KU/ODP requests authority to engage in an affiliate transaction.