Sierra Club Graded Kentucky Electric Utilities
State utility operators face new scrutiny over generation mix as coal dependence remains high.
Updated on Sept. 23, 2026 in Utilities
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The Sierra Club released a scorecard evaluating Kentucky electric utilities based on their reliance on coal and natural gas. Kentucky Power was the only provider to receive a D grade, while all other utilities in the state received an F.
Why it matters
The report highlights the widening gap between local energy production and national trends, as coal still accounts for two-thirds of Kentucky's power compared to 16% nationwide. This disconnect presents potential long-term regulatory and supply risk for businesses reliant on local grid stability.
Only one Kentucky utility earned a D grade while four others received an F in the latest Sierra Club evaluation. This disparity comes as the U.S. Energy Information Administration forecasts national coal generation to decline 8% this year and another 6% in 2027.
The players
Kentucky Power
An electric utility provider that currently maintains a higher commitment to wind and solar than its regional peers.
Sierra Club
An environmental advocacy organization that tracks utility generation portfolios and issues periodic performance scorecards.
U.S. Energy Information Administration
A federal agency that collects and analyzes data on energy production, consumption, and market trends.
The details
The grades were determined by evaluating each utility's commitment to shifting away from fossil fuels toward renewable alternatives. Kentucky Power earned a higher grade than its peers by incorporating plans for wind and solar generation into its 2022 integrated resource plan. Other providers remain heavily reliant on existing coal-fired infrastructure, which continues to dominate the state's energy mix despite broader national shifts toward solar dominance.
Timeline
2022: Kentucky Power's integrated resource plan was developed.
May 2026: Solar generation surpassed coal generation nationwide.
Week of September 23, 2026: The Sierra Club released its latest utility scorecard.
Market Landscape
This scorecard follows the precedent set by the 2025 Tennessee Valley Authority scorecard grade. The report extends the Sierra Club's ongoing campaign to pressure regional power providers to accelerate their decarbonization efforts.
Operators should review their utility's long-term resource plans, as reliance on coal may signal future regulatory and pricing volatility. Businesses should track regional energy cost trends to adjust for potential infrastructure shifts.
The takeaway
The gap between Kentucky's coal-heavy energy profile and national generation trends poses a strategic risk to local business operations. Management should monitor future utility filings for shifts in generation portfolios that could impact long-term energy costs.
Further reading
For more information on grid reliability and energy shifts, visit the Utilities section.
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