A controversial biomass plant proposed for Eastern Kentucky has moved closer to extinction following a ruling Thursday by the state Public Service Commission.
The PSC rescinded an order that allowed the $1.26 billion wood-burning project to proceed. The move came in response to a state court of appeals decision last month that deemed the plant unnecessary and likely to cause an undue economic burden on the region’s residents.
“As a result, it has no future, thankfully,” said Michael Kurtz, the Cincinnati attorney representing Kentucky Industrial Utility Customers Inc., an association of major energy-consuming companies that had filed suit to contest the PSC’s decision.
“The plant could only be financed and built if the businesses and poor people of Eastern Kentucky were forced to subsidize this grossly uneconomic project,” Kurtz said, adding that the project would have helped only “politically-connected developers.”