The utility filed an application with the Kentucky Public Service Commission for a certificate of public convenience and necessity to convert unit 1 at the Louisa, Lawrence County complex.
The documentation was filed on December 6.
KP said the move was commensurate with a stipulated settlement deal in the Mitchell Transfer case that the KPSC already approved on October 14.
Under the terms, the utility agreed to file the CPCN for the 278-megaawatt unit to burn gas as long as the project’s cost did not exceed $US60 million.
The CPCN is seeking about $50 million in conversion costs.
Once the transition is complete, the Big Sandy unit will have a 268MW generation capacity.
“We have determined that the conversion of unit 1 is a least-cost option for meeting our customers' electricity needs,” Kentucky Power president and chief operating officer Greg Pauley said.
“In addition, it will allow us to retain a corporate presence in Lawrence County for years to come, contributing to the employment and tax bases of the region.”
The utility projected that the Big Sandy plant would continue to employ 20 to 30 full-time workers once the conversion was complete and there would be about 130 temporary jobs created at the peak of the conversion construction.
Officials hope to have the converted unit online by mid-2016.
