Kentucky Power Eyes February 2027 Start for Muskie 765-kV Substation

Kentucky Power Eyes February 2027 Start for Muskie 765-kV Substation

Kentucky Power plans to start 765-kV substation construction in February 2027 to serve TeraWulf’s Muskie data campus, now contracted at 1 GW, ENR reports. The second 500-MW phase moves up to 2029.

Market Impact

TeraWulf said Oct. 5 that it doubled contracted electric service for Muskie from 500 MW to 1 GW. The first 500 MW still begins ramping in 2028, while the second phase shifts from 2030 to 2029. The added service needs Kentucky Public Service Commission approval. TeraWulf has not named a tenant, and the company says it is evaluating expansion to as much as 2 GW.

Kentucky Power, an American Electric Power subsidiary, plans the Venator Substation in Boyd County to serve the Muskie campus. It would include about 2.5 miles of overhead 765-kV lines tying into an existing 765-kV line, plus about six miles of parallel overhead 345-kV lines running to the campus at EastPark Industrial Park near Grayson. The target in-service date is October 2028. ENR notes that project materials list no construction costs or contractors, and final routes are not selected.

The amended agreement also carries financial commitments. If regulators approve it, TeraWulf would fund an expected $100 million in residential winter bill credits over 10 years and cover estimated financing costs for Kentucky Power’s proposed 760-MW Big Sandy combined-cycle plant. Residents have questioned ratepayer exposure, and a June 1 Boyd County town hall raised cost, water and environmental concerns.

What It Means for Subcontractors

• Substation and line scope (electrical, civil, line crews): Schedule per ENR: substation construction starts February 2027, transmission lines November 2027. Scope is one 765-kV substation, 2.5 miles of 765-kV line and six miles of 345-kV line. Inference: no contractors are named, so awards likely run through Kentucky Power/AEP procurement. Get onto AEP’s supplier channels before packages are defined.
• Regulatory gates set the real start date: Kentucky Power plans to file the substation application with state regulators in October 2026 and the line application in January 2027. The added 500 MW also needs PSC approval. A slip in either filing would likely push the February 2027 mobilization. Check the PSC dockets after each filing for the approval timeline.
• Route work is still open: Kentucky Power holds a Catlettsburg open house Oct. 15 and wants comments by Oct. 29. Routes are undecided, so right-of-way, survey, geotechnical and environmental scopes probably come before construction packages (inference). Local pushback is documented, so expect schedule risk on the line segments.
• Financing reduces, but does not remove, risk: TeraWulf’s $100 million in bill credits and Big Sandy financing coverage are sourced commitments, but they depend on regulatory approval. No tenant has been announced for Muskie. Inference: price the 2028 and 2029 phases as probable, not firm, until the PSC rules.
• Data center building scope has no GC yet: ENR reports Fluor is general contractor at TeraWulf’s separate Hawesville campus, but no builder is named for Muskie. Trades chasing campus work (mechanical, electrical, sitework) have no procurement stage to bid into yet. The 2028 first-phase ramp-up date is the marker to work back from.