The company said the closure of the coal units meant the NGCC project at Cane Run Generating Station could come online as early as May 2015.

“Having received timely certificates and permits from the Kentucky Public Service Commission and other regulatory agencies, we were able to get a quick start on the project and now should be able to retire the coal-fired units sooner than expected," senior vice president of energy services Paul Thompson said.

Preliminary work has commenced, including movement of transmission lines and relocation of the facility’s communications tower.

Plant builder Bluegrass Power Constructors projects mobilization later this year and anticipates a first-quarter 2013 timeline for full construction start.

The May 2015 completion timetable is under contract with Bluegrass, with penalties enforceable if the deadline is extended.

Construction of the NGCC plant is expected to create 250 jobs.

The six-unit can run plant began operations in 1954. Units 1, 2 and 3 were retired in 1987, and the remaining three units have a 563-megawatt net generating capacity.

LG&E helped develop and install one of the nation's first sulfur-dioxide scrubbers in 1973.

“Cane Run has served the energy needs of our customers well for nearly 60 years, and the development of a natural gas plant at the site will allow us to continue to meet customers' energy needs and comply with more stringent EPA regulations,” Thompson said.