Regulation & Approvals
Kentucky Power gets state approval for $191 million cooling tower at Mitchell coal plant
By News Desk ·
Key takeaways
- The Kentucky Public Service Commission approved Kentucky Power's $191 million cooling tower project at a coal plant near Moundsville, West Virginia.
- The project depends in part on a $51 million U.S. Department of Energy grant Kentucky Power received in June.
- Kentucky Power and Wheeling Power, both American Electric Power subsidiaries, will split the project's costs.
Kentucky Power received permission from Kentucky's utility regulator to build a replacement cooling tower and partially demolish an aging one at a coal-fired power plant it co-owns near Moundsville, West Virginia. The Kentucky Public Service Commission approved the $191 million project in a Friday order, contingent in part on the utility using a $51 million federal grant it received. Yahoo reported the approval.
Kentucky Power's Cooling Tower Order
The commission wrote that Kentucky Power "presented credible evidence that the cooling tower no longer meets design loads, presents a safety hazard, and that there is a risk of catastrophic failure in an extreme weather event." The regulator is requiring the utility to provide updates on construction and demolition, along with the status of the grant it received in June. Kentucky Power could seek to recover project costs from ratepayers in a future rate case or through another mechanism.
Kentucky Power is a regulated electric utility within the American Electric Power system, serving roughly 162,000 customers across 20 eastern Kentucky counties. The plant's costs are to be split between Kentucky Power and Wheeling Power, both American Electric Power subsidiaries. The plant is more than 50 years old and is slated for retirement in 2040. Kentucky Power spokesperson Sarah Lynch said the utility could "now move forward with this important investment, supporting reliable service for customers while maintaining the lowest reasonable cost."
Kentucky Power's Federal Grant and Plant Scale
According to akta.pro company records, Kentucky Power was selected in June 2026 to receive a $51 million U.S. Department of Energy grant to fund upgrades at the Mitchell Plant, reducing cost impact for customers while extending baseload generation viability. The same records put Kentucky Power's share of the Mitchell Plant at approximately 780 megawatts of baseload coal-fired power, with total project investment for the new cooling tower at approximately $95.5 million.
Earlier Kentucky Power Filings and Agreements
In October 2026, Kentucky Power was rebuilding about 10 miles of 69-kV transmission line in Pike County, replacing aging 1960s equipment with modern steel infrastructure, EIN Presswire reported. Earlier that month, Kentucky Power and TeraWulf finalized an expanded agreement providing $100 million in customer benefits, with TeraWulf funding residential winter bill credits and paying estimated financing costs for planned generation construction, according to Stock Titan. In September 2026, the Kentucky Public Service Commission denied a group of stakeholders, including the Appalachian Citizens Law Center and Kentuckians for the Commonwealth, the opportunity to intervene in an audit of Kentucky Power's operations and management, Yahoo reported.
What Comes Next for the Mitchell Plant
The commission is requiring Kentucky Power to provide updates on the status of the project's construction and demolition, along with the status of the grant the utility received in June. The plant is slated for retirement in 2040.