LG&E and KU Partner with Rye Development to Evaluate Kentucky's First Pumped Storage Hydro System

New 266-megawatt energy storage project would bring 2,300 construction jobs to Eastern Kentucky

Apr. 13, 2026 at 8:08pm

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A minimalist, photorealistic studio still life featuring a polished, geometric metal sculpture representing a hydroelectric dam or turbine, floating on a clean, monochromatic background and dramatically lit to symbolize the engineering behind the pumped storage hydropower project.A conceptual representation of the advanced technology behind Kentucky's first pumped storage hydropower project, a significant investment in the state's energy infrastructure.Louisville Today

Louisville Gas and Electric Company and Kentucky Utilities Company, subsidiaries of PPL Corporation, are teaming up with Rye Development, a leading U.S. hydropower developer, to bring pumped storage hydropower to Kentucky. The Lewis Ridge Pumped Storage Project, located in Bell County, would be the first of its kind in the state and one of the first new pumped storage projects built in the U.S. in over 30 years.

Why it matters

Pumped storage hydropower is the world's largest and most common type of energy storage, and this project would further diversify LG&E and KU's power generation fleet to support Kentucky's economic growth. It would also strengthen the grid and provide long-term economic benefits to the local community.

The details

The $1.3 billion Lewis Ridge Pumped Storage Project would generate 266 megawatts of on-demand electricity daily by moving water between two reservoirs at different elevations. During low demand, excess energy is used to pump water to the upper reservoir, and when demand is high, the stored water is released to generate electricity. The project is expected to support 2,300 construction jobs and contribute $1.65 million annually in local tax revenue.

  • LG&E and KU received a preliminary permit from the Federal Energy Regulatory Commission in 2022.
  • Construction of the project could begin as early as 2027.
  • The project is expected to be commercially operational by 2031.

The players

LG&E and KU

Louisville Gas and Electric Company and Kentucky Utilities Company are regulated utilities that serve nearly 1.4 million customers in Kentucky and Virginia. They are subsidiaries of PPL Corporation.

Rye Development

Rye Development is a leading U.S. hydropower developer that is advancing the next generation of pumped storage hydropower, the largest and most proven form of energy storage.

PPL Corporation

PPL Corporation is the parent company of LG&E and KU, and it owns and operates one of the most reliable power generation fleets in the nation.

John R. Crockett III

President for LG&E and KU.

Paul Jacob

CEO of Rye Development.

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What they’re saying

“The Lewis Ridge Pumped Storage Project is a compelling initiative to explore with Rye Development because it would be the first of its kind for Kentucky and would further diversify our flexible, sustainable power generation fleet supporting the commonwealth's economic growth momentum.”

— John R. Crockett III, President for LG&E and KU

“Large-scale energy storage systems like Lewis Ridge not only strengthen the grid; they are significant long-term investments, providing economic benefits to communities and stabilizing energy prices for decades.”

— Paul Jacob, CEO of Rye Development

What’s next

LG&E and KU are performing a thorough evaluation of the project, and if proven effective, the utilities would then file a request with the Kentucky Public Service Commission for authority to further advance the project.

The takeaway

This partnership between LG&E, KU, and Rye Development to bring Kentucky's first pumped storage hydropower project to the state represents a significant investment in grid resilience, renewable energy integration, and long-term economic benefits for the local community.