By Tony McVeigh
Frankfort, KY – Power rates will rise. That's the bottom line of testimony in Frankfort on the costs of meeting new federal environmental standards for coal-fired utilities in Kentucky.
Representatives of several coal-fired utilities in Kentucky say meeting federal clean air standards already in the pipeline will require investments of billions of dollars. John Voyles of LG&E and KU says their capital costs could rise by four billion dollars over the next ten years.
"This does not deal with the water rules. It does not deal with renewable portfolio standards of any kind. And it certainly does not deal with any climate change rules that might still be legislated in the future."
Voyles, and representatives of Big Rivers, East Kentucky Power Cooperative, Kentucky Power and Duke Energy all say significant utility rate increases in coming years will be necessary for them to comply with new federal environmental standards.