Louisville’s Air Pollution Control District has proposed construction permits for two new LG&E natural gas power plants that were approved by the Public Service Commission (PSC) in 2024 and 2026.
The first gas plant, Mill Creek 5, was approved in 2024 under the condition that two old coal units (Mill Creek 1 and 2) were closed. Although Mill Creek 1 shut down in 2024, overall emissions increased because Mill Creek 2 remained open and increased its output to make up for Mill Creek 1. Mill Creek 5 is expected to be complete by 2028. The second new gas plant, Mill Creek 6, approved in 2026, is expected to be built by 2031. This gas plant will primarily be used to power proposed data centers that are coming to Kentucky.
The first permit would allow LG&E to keep Mill Creek 2 open until Mill Creek 5 is built. Built in the 1970s, Mill Creek 2 lacks modern pollution controls and emits a significant source of harmful emissions when Louisville already faces serious air quality issues. The second permit is to build Mill Creek 6, which would serve the anticipated energy demand of proposed data centers, which will not be complete until 2031.
The APCD held a hearing on June 23rd, 2026, on the permits which was widely attended by more than 75 concerned community members and groups, including Rubbertown Emergency ACTion (REACT) and No Data Center 502.
Extending the operation of aging coal plants and constructing new natural gas plants would not only worsen air quality and public health in Louisville, but also increase costs for ratepayers. Keeping outdated, increasingly unreliable coal plants online while building additional generation to serve speculative data centers that have not yet been constructed is likely to drive up electricity costs for Louisville customers. We see this already happening – in LG&E’s 2025 Certificate of Public Convenience and Necessity (CPCN), the PSC approved a monthly increase in customer rates through a “Pilot Generation Recovery Rider” to keep Mill Creek 2 open while the new gas plants are being built. In addition, LG&E customers saw a 4.6% rate increase take effect in February 2026. That decision has since been reopened for rehearing by the PSC, raising the possibility of additional rate increases in the coming year. Since 2012, rates have increased by 45.2%. More than 17% of Louisville residents struggle to pay their utility bills, forcing many families to make difficult choices between paying for electricity and meeting other essential needs, such as housing, food, and healthcare.
In recent news, the EPA has filed a rule as of July 1, 2026, which would roll back requirements for public notice and participation in minor new source review (NSR) permitting under the Clean Air Act. If finalized, this could reduce opportunities for people to comment on projects like the APCD permits for LG&E’s power plants or the proposed data center on Campground Road. A virtual preliminary hearing is set for July 22nd from 10am to 4pm.
