When headlines warn of soaring energy costs, grid stress, and the explosive growth of data-hungry industries, it is natural to wonder who is looking out for everyday Kentuckians. In much of Kentucky, electric cooperatives take up that charge.
As member-owned, not-for-profit utilities, co-ops are built to protect the people they serve. And today, as the energy landscape shifts rapidly, co-ops are stepping forward — advocating for fair policy, planning responsibly for new industrial load, and pushing back when proposals threaten the reliability of the grid, the wallets of consumer-members, or both.
From soaring infrastructure costs and federal regulatory shifts to the sudden arrival of massive data-center developers looking for hundreds of megawatts of power, Kentucky’s cooperatives are stepping into a new era of advocacy.
“We exist to serve the people of rural Kentucky,” says Don Mosier, President and CEO of East Kentucky Power Cooperative (EKPC). “That means planning responsibly, investing carefully, and speaking up when policies or proposals threaten the affordability or reliability our members depend on.”
EKPC is owned by 16 local electric distribution co-ops, delivering power to over 1 million people across 89 Kentucky counties.
Standing Up to PJM: A Case Study in Consumer Advocacy
In October, EKPC teamed up with Kentucky Attorney General Russell Coleman to challenge a proposal from PJM Interconnection—the regional grid operator serving part of eastern Kentucky and 12 other states.
At issue is how PJM would allocate the costs of emergency federal orders requiring some plants to remain online. PJM’s plan would spread those costs across the entire region—even in states, like Kentucky, that have responsibly secured their own reliable generation resources and kept them operating. That’s in contrast to other states that advanced policies to close plants, contributing to the shortfall.
In a formal protest filed with federal regulators, EKPC and the Attorney General argued that PJM’s plan violates longstanding principles and would unfairly raise bills for Kentuckians. Coleman said bluntly that Kentuckians should not be forced “to pay for someone else’s poor planning.”
For co-ops, this is what consumer advocacy looks like: stepping in with facts and evidence when policy proposals threaten to shift unjustified costs to the very families co-ops are built to protect.
Planning for Growth Without Burdening the Consumer
Across the nation, the rise of artificial intelligence and cloud computing has sparked a flood of data center development, offering opportunities such as jobs and additional tax base. These facilities can require hundreds of megawatts of electricity—enough to power tens of thousands of homes.
Kentucky’s relatively low energy prices and available land have already drawn interest from major developers. But “the siting of these particular centers will be a concern especially in communities that have water and resiliency needs already,” Kentucky Energy and Environment Cabinet Secretary Rebecca Goodman warned at the Kentucky Electric Cooperatives Annual Meeting in August. “And the cost associated with the energy that’s required is going to be a real challenge.”
“But I want to recognize EKPC and applaud them for filing with the PSC to establish a framework to address significant costs associated with data center growth including power supply, transmission planning and new generation capacity while protecting other customers from rate increases,” says Goodman.
Co-ops have been proactive in preparing for the possibility of serving data centers because, under Kentucky law, they are legally obligated to serve any new home, business, factory or even data center that locates in their territories.
EKPC’s Data Center Power tariff—the first of its kind among cooperatives—ensures that developers shoulder the full cost of serving their load, including required studies, upgrades, and even dedicated generation resources for very large projects. The goal is simple: economic development is welcome, but not at the expense of existing members.
Big Rivers Electric Corporation, owned by three distribution co-ops that serve 22 counties in Western Kentucky, shares the same philosophy. President and CEO Don Gulley emphasizes that large loads must not be subsidized by local families and small businesses. “Any large-load project must stand on its own two feet,” Gulley says. “These new loads should strengthen the system, stabilize rates, and create long-term value for the communities we serve.”
The Tennessee Valley Authority which serves five of the 24 distribution co-ops in Kentucky, is sounding the same note of caution. TVA reports that data centers jumped from just 1% of its industrial load in 2019 to 14% in 2024, with 11,000 megawatts of new requests now pending.
“TVA is focused on ensuring customers do not subsidize power for industries such as data centers,” says TVA spokesman Adam May. “We’re not saying no—we’re saying ‘yes, but…’ It will take us time to add new generation to meet the growing demand. We also work with data centers to ensure they participate in demand response programs where they reduce their load on the grid during peak demand times such as cold winter mornings and hot summer afternoons.”
Why Co-op Advocacy Matters Now
While data centers draw headlines, rising electricity costs have deeper roots. National studies show dramatic rises in the cost of poles, wires and transformers, coupled with the costs to comply with ever-changing federal environmental regulations. Many coal plants were forced into early retirement not because they were unreliable, but because the cumulative regulatory burden made continued operation financially impossible.
The result? Increasing energy prices and decreasing reliability, consequences co-ops warned policymakers about for years.
Today, co-op representatives continue showing up in Frankfort and Washington—as consumer advocates.
“Kentucky’s electric cooperatives are locally grown and community focused, and that’s what everybody expects. That’s what we appreciate about you.” Secretary Goodman told co-op leaders. “You’re trusted in your communities. When you speak, people listen, and when you act, you make a real difference.”
In a rapidly changing energy landscape, Kentucky’s electric cooperatives are determined to keep earning the trust of consumer-members and policymakers — by planning wisely, advocating boldly, and protecting their members above all else.
