Kentucky’s attorney general and largest electric utility provider agreed to a proposed settlement this week in a case before state regulators, which would scrap plans for a battery storage facility and instead extend the life of its coal-fired power plant in Louisville.

Louisville Gas and Electric and Kentucky Utilities had already sought permission from the Kentucky Public Service Commission to build out $3.7 billion of new and upgraded power plants, saying the additional power generation is needed to serve future data centers they expect to be built in the coming years.

If this request — now amended by the proposed settlement — is approved by the PSC, a future case would likely determine how the companies recover the funds used to build the plants through rates paid by energy customers

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