Utility Tariff Analysis · Updated September 2026

KU/LG&E's Extremely High Load Factor Service Tariff: What It Means for AI Data Center Siting in Kentucky

September 18, 2026 6 min read Strategic Crypto Reserve Data Center Infrastructure

Customers with an extremely high, continuous load factor qualify for a new Extremely High Load Factor Service tariff, approved in February 2026 as part of KU and LG&E's larger rate reviews. Kentucky Power separately received approval in March 2025 for changes to its industrial general service tariff (Case No. 2024-00305).

Kentucky at a glance: industrial power about 7.6¢/kWh (EIA-based, indexed to April 2026) · grid queue about 28 months · data center equipment tax exemption: available. Indicative figures from the SCR AI Build Configurator v1.4.0.

The Tariff Explained Model a Kentucky Build Free
Kentucky AI data center power map: KU/LG&E's Extremely High Load Factor Service Tariff large-load tariff

KU/LG&E's Extremely High Load Factor Service Tariff

KY

Kentucky Utilities and Louisville Gas and Electric (PPL)

2025-00113 / 2025-00114

Regulatory docket / filing reference

Customers with an extremely high, continuous load factor

Who the tariff applies to

Customers with an extremely high, continuous load factor qualify for a new Extremely High Load Factor Service tariff, approved in February 2026 as part of KU and LG&E's larger rate reviews. Kentucky Power separately received approval in March 2025 for changes to its industrial general service tariff (Case No. 2024-00305).

Also active in Kentucky: Kentucky's live pipeline includes a 1 GW TeraWulf data center project at the Muskie Data Campus in eastern Kentucky and a 400 MW PowerHouse Data Centers campus in Louisville.

Kentucky at a glance: large-load tariff threshold, docket and who it applies to

Named Projects Already Underway

CustomerLocationDetails
TeraWulfEast Park, KY1 GW data center project planned at the Muskie Data Campus in eastern Kentucky
PowerHouse Data Centers / Poe CompaniesLouisville, KY400 MW data center campus, with 130 MW of initial capacity available in October 2026

Figures compiled from the Edison Electric Institute's "Large Load Projects and Tariffs" (September 2026) member-company summary and public regulatory filings. Confirm current tariff terms directly with Kentucky Utilities and Louisville Gas and Electric (PPL) and the relevant state public utility commission before relying on any figure for a capital decision.

Weighing Kentucky against another state or a Canadian province with a different rate and interconnection picture entirely? Run both sides of the comparison through our licensed AI data center cost configurator — it applies each jurisdiction's actual power rate, tax treatment and large-load tariff rules to the same seven build configurations.

Named data center projects underway in Kentucky Named Projects Already Underway: KU/LG&E's Extremely High Load Factor Service Tariff: What It Means for AI Data Center Siting in Kentucky

Model This State on Your Own Site

Every figure above comes from the same power-cost and tariff dataset behind the SCR AI Build Configurator — a licensed, embeddable widget that models seven data center build configurations against all nine Canadian provinces and all 50 US states plus DC, returning capital expenditure by line item, energy cost, revenue by commercial structure, EBITDA and payback.

LicencePrice (CAD)Who it suits
Standard$4,000 / domain / yearAdvisors who need three lease-model configurations and a clipboard summary
Pro$10,000 / domain / yearConsultants who send CSV deliverables to clients and want all seven configurations
EnterpriseFrom $25,000 / year, up to 3 domainsDevelopers and EPC firms who want the model on their own cost basis with attribution removed

Not ready for an annual licence? A one-time Site Screening Report ($950, one site) runs the same model for a single build without embedding anything.

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Model a Kentucky data center build in the SCR AI Build Configurator: CapEx, power cost, EBITDA and payback Model This State on Your Own Site: KU/LG&E's Extremely High Load Factor Service Tariff: What It Means for AI Data Center Siting in Kentucky

Compare Kentucky With Nearby States

Large-load rules change sharply at state lines. See how the neighbouring utilities handle data center and high-density loads before you shortlist a site.

Ohio

AEP Ohio 25 MW / 85%
Tennessee

TVA capacity charge (5 MW)
Indiana

I&M Tariff I.P. / NIPSCO GenCo
West Virginia

Appalachian Power LCP / IP
All 50 State Tariffs Data Center Cost Calculator AI Build Configurations

Frequently Asked Questions

What is KU/LG&E's Extremely High Load Factor Service Tariff?

Customers with an extremely high, continuous load factor qualify for a new Extremely High Load Factor Service tariff, approved in February 2026 as part of KU and LG&E's larger rate reviews. Kentucky Power separately received approval in March 2025 for changes to its industrial general service tariff (Case No. 2024-00305).

Why did Kentucky Utilities and Louisville Gas and Electric (PPL) introduce this large-load structure?

To ensure the cost of new generation, transmission and distribution infrastructure built to serve very large customers, chiefly hyperscale data centers, is paid for by those customers rather than spread across the general rate base of residential and small commercial ratepayers.

What large data center projects are already active in Kentucky?

Kentucky's live pipeline includes a 1 GW TeraWulf data center project at the Muskie Data Campus in eastern Kentucky and a 400 MW PowerHouse Data Centers campus in Louisville.

Does this tariff replace Kentucky's standard commercial and industrial rates?

No. KU/LG&E's Extremely High Load Factor Service Tariff sits above Kentucky Utilities and Louisville Gas and Electric (PPL)'s standard commercial and industrial rate schedules and applies specifically to customers that meet or exceed the large-load threshold described above. Smaller commercial and industrial loads continue to be billed under existing rate schedules.

How can I model a Kentucky data center build against this tariff and other states?

The SCR AI Build Configurator applies Kentucky's power cost, tax treatment and large-load tariff rules alongside all other US states and Canadian provinces, so a Kentucky scenario can be compared line-by-line against any alternative site.