OMU seeks study for proposed 545‑megawatt gas plant at Elmer Smith site, developer to fund upgrades

Tim Lines, general manager of Owensboro Municipal Utilities, told the City Commission that OMU has received a generator interconnection application from Green River East Genco LLC for an approximately 545‑megawatt natural‑gas generation plant at the former Elmer Smith station site and that the OMU commission approved a lease option on roughly 30 acres of the property. "We have re officially received a generator interconnection application from Green River East Genco LLC for a natural gas fire generation plant for approximately 545 megawws," Lines said.

Lines said the commission also authorized GDS & Associates to perform a system impact and facility study, work that must comply with Federal Energy Regulatory Commission and North American Electric Reliability Corporation requirements. "This study is expected to take a minimum of six months," he said. Lines added that any required transmission or system upgrades identified by the study would be paid by the developer or customer, not by OMU ratepayers.

Commissioners asked whether OMU would own or operate the plant. Lines said third‑party ownership is most likely and that OMU would be cautious about taking on the project's full capital risk: "One of the biggest concerns is that taking on a plant of a billion dollars would put a considerable risk upon OMU customers." He said OMU might negotiate a power‑purchase agreement or partial ownership to mitigate risk.

Lines estimated employment if OMU operated the facility would be modest. "We would anticipate a plant this size to employ between 15 and 20 employees," he said. Commissioners also asked about water use; Lines said modern gas plants generally use closed‑loop cooling and estimated on the order of 50,000 gallons per day for a plant of this scale.

Lines framed the proposal as part of OMU's longer‑term resource planning. OMU recently signed a supply contract identified in the presentation as beginning in 2027 and has completed an integrated resource plan that found self‑building smaller plants was not cost effective. The commission approved the lease option earlier in the year to allow the developer to complete surveys and studies while OMU proceeds with the interconnection process.

The commission did not take a final action on construction or ownership at the meeting; Lines said staff will return with study results and next steps. The interconnection/facility study timeline and any developer proposals will shape whether and how the project moves forward.