EKPC files an application to construct the 278-megawatt coal-fired Smith 1 unit and five 90-megawatt gas turbine generators at the Smith Station in Trapp, in Clark County. The projections for increased power demand included the needs of 60,000 customers of the Warren Rural Electric Cooperative, which had decided in 2004 to join the EKPC system.
The PSC approves EKPC’s application.
Warren Rural Electric Cooperative reverses its decision to join EKPC and decides to remain within the Tennessee Valley Authority system. In response, the PSC opens a review of EKPC’s generation needs.
The PSC allows EKPC to continue with Smith 1, but the utility voluntarily cancels plans for three of the five gas-fired generators.
Berry, Patterson and Rausch, as well as three environmental groups, file a complaint with the PSC, saying that Smith 1 is no longer needed and is not the least-cost means of meeting EKPC’s future power needs. The PSC allows the complaint to go forward with the three individual plaintiffs.
EKPC files an application to take on up to $921 million in additional debt, mostly to pay for Smith 1. Gallatin Steel is allowed to intervene in the case.
The PSC opens its investigation into the continued need for Smith 1, combining it with the complaint case and allowing EKPC to withdraw the financing request. All parties to the complaint and financing cases are made parties to the investigation.
February 8, 2011
The PSC holds a combined evidentiary hearing in the investigation and regulatory asset cases.
February 28, 2011
The PSC issues orders allowing cancellation of Smith 1 and establishing a regulatory asset to separately account for the sunken costs.