The Kentucky Public Service Commission on Nov. 2 approved Louisville Gas and Electric’s plan to contract with Charah Inc. for coal byproduct disposal at the Mill Creek power plant.
On Aug. 28, LG&E, a unit of PPL Corp. (NYSE: PPL), had filed an application requesting approval of a license agreement contained in the proposed Coal Combustion Residual Marketing and Management Contract with Charah. On Oct. 23, LG&E filed a redacted copy of a “substantially completed” contract and requested expedited treatment of this matter.
LG&E is proposing to grant Charah a license to design, permit, construct and operate a processing plant at LG&E’s Mill Creek plant. Charah will utilize Specification Gypsum generated at Mill Creek for beneficial reuse in the manufacture of “Pelletized Product” for sale and distribution. This gypsum is a byproduct of the plant’s SO2 scrubbers.
The contract is for an initial term of 13 years and is subject to consecutive five-year renewals. LG&E will not convey any interest in the land at Mill Creek to Charah, and the beneficial reuse facilities Charah proposes to build will become LG&E’s upon termination of the contract (excepting certain equipment, which Charah will remove or convey to LG&E upon mutually agreeable terms).
Mill Creek is a four-unit, 1,472 MW (summer capacity) coal-fired station that sits on approximately 570 acres in southwestern Jefferson County along the Ohio River. Mill Creek’s fourth (and final) unit went into commercial operation in 1982.
Charah provides coal combustion residual handling, environmental control byproduct handling, and landfill services to LG&E at Mill Creek. Charah recently proposed to extend its current Mill Creek contracts, which will expire on March 31, 2016, and to increase its beneficial reuse activity at this site. This activity will include the gypsum project. Charah also proposes to construct facilities at Mill Creek to enhance its ability to sell fly ash produced and to construct a storage dome capable of storing 8,000 tons of specification-grade fly ash, as well as a transfer silo with a 200-ton capacity, the commission noted.
“The transaction will promote a valuable public purpose in facilitating the increase in the beneficial reuse activity, while having no adverse impact on LG&E’s operations at Mill Creek,” the commission noted.