Regulation & Approvals
Kentucky Power Seeks Approval for 760-MW Gas Plant to Serve TeraWulf's Muskie Data Campus
By News Desk ·
Key takeaways
- Kentucky Power filed plans with the Kentucky Public Service Commission for a 760-MW combined-cycle gas facility next to its Big Sandy unit in Louisa.
- The project is expected to provide more than $500 million in fixed-cost rate offsets and $100 million in winter bill credits for residential customers.
- TeraWulf's Muskie Data Campus in Grayson is expected to support up to 1 gigawatt of contracted electric demand in phases by 2029.
Kentucky Power filed plans with the Kentucky Public Service Commission on November 13, 2026, for a new 760-MW combined-cycle natural gas facility and a transmission substation to serve TeraWulf's planned Muskie Data Campus in Grayson, Kentucky. Stock Titan reported the filings.
Kentucky Power's Big Sandy Filing
Kentucky Power is a regulated electric utility in the American Electric Power system serving about 162,000 customers in 20 eastern Kentucky counties. The company is seeking approval to build the gas facility next to its Big Sandy natural gas generating unit in Louisa, along with a new transmission substation in the EastPark Industrial Park area.
Over the life of the agreement, the project is expected to provide Kentucky Power customers with more than $500 million in fixed-cost rate offsets and $100 million in winter bill credits for residential customers. If approved, TeraWulf will fund the winter bill credits beginning in 2029 and continuing over the first 10 years of the contract.
"Our commitment to eastern Kentucky goes beyond providing reliable electricity," said Cindy Wiseman, president and chief operating officer of Kentucky Power. "We've served these communities for generations, and we want our customers and communities to share directly in the benefits when new investment comes to the region."
TeraWulf's Muskie Data Campus is expected to support up to 1 gigawatt of contracted electric demand in phases by 2029, subject to regulatory approval and construction schedules. The generation facility and transmission infrastructure each require separate Certificates of Public Convenience and Necessity from the PSC.
Kentucky Power's TeraWulf Partnership Records
According to akta.pro company records, Kentucky Power partnered with TeraWulf in May 2026 to build dedicated electrical infrastructure supporting the Muskie Data Campus in northeastern Kentucky, requiring over 1 gigawatt of capacity, with the first 500 MW by the second half of 2028 and full capacity by 2030. The same records show Kentucky Power's share of the Mitchell Plant represents approximately 780 megawatts of baseload coal-fired power, and total investment for a new cooling tower there is approximately $95.5 million.
Earlier Kentucky Power Regulatory Steps
In October 2026, Kentucky's utility regulator approved Kentucky Power to build a new cooling tower and partially demolish an aging one at a coal plant near Moundsville, West Virginia, Yahoo reported. Earlier that month, Stock Titan reported that Kentucky Power and TeraWulf finalized an expanded agreement providing $100 million in customer benefits, with TeraWulf funding residential winter bill credits and agreeing to pay estimated financing costs for planned generation construction. In April 2026, Kentucky Power received PSC approval for the Prestonsburg-Thelma Transmission Line Rebuild Project, rebuilding approximately 14 miles of transmission line to 69-kV standards.
When Kentucky Regulators Could Decide
Subject to the PSC's review schedule, decisions on the filings could come as early as mid-year 2027.