A publication of the Kentucky Center for Public Service Journalism

PSC allows KU, LG&E to drop certain energy efficiency programs after costs outweigh benefit

After a thorough review of the costs, benefits and need for demand-side management (DSM) programs offered by Kentucky Utilities Co. and Louisville Gas & Electric Co. (KU/LG&E), the Kentucky Public Service Commission (PSC) has authorized all but one of the programs proposed by the utilities. In an order issued today, the PSC found that while many of the DSM programs cost more than they save,...

Public Service Commission rejects South Kentucky RECC power purchase deal with Morgan Stanley

The Kentucky Public Service Commission has rejected a proposal by South Kentucky Rural Electric Cooperative Corp. to enter into a long-term agreement to purchase power through Morgan Stanley Capital Group, Inc. In an order issued Thursday, the PSC found that the deal with Morgan Stanley violates South Kentucky’s obligation to purchase most of its electricity from the East Kentucky Power Cooperative...

Public Service Commission orders credit for Delta Natural Gas customers to reflect federal tax cut

The Kentucky Public Service Commission has reduced the annual revenue of Delta Natural Gas Co. to reflect a federal tax cut, thereby lowering the base rate portion of the average monthly bill for residential customers. In an order issued Friday, the PSC approved a customer credit to reflect reduced federal corporate income tax rates that took effect at the first of the year. The credit will take effect...

PSC lifts moratorium on some Duke Energy Kentucky efficiency efforts, eliminates others

After a thorough review of the costs, benefits and need for Duke Energy Kentucky’s demand-side management (DSM) programs, the Kentucky Public Service Commission has allowed the resumption of most of the programs, while modifying or eliminating others. In an order issued Thursday, the PSC found that some of the DSM programs are needed for Duke Kentucky to meet its obligations as a member of a regional...

Public Service Commission adjusts Kentucky American Water rates to reflect federal tax changes

The Kentucky Public Service Commission has reduced the annual revenue of Kentucky American Water Co., thereby lowering the average monthly bill for residential customers. In an order issued Thursday, the PSC approved rates to reflect reduced federal corporate income tax rates that took effect at the first of the year. The result will be a savings of $3.84 per month for a typical residential customer...

Kentucky Public Service Commission denies KU and LG&E bid to deploy advanced smart meters

The Kentucky Public Service Commission has rejected a proposal by the Kentucky Utilities Co. and Louisville Gas & Electric. Co. to deploy advanced “smart” meters and associated technology throughout their systems. In an order issued Thursday, the PSC stated that, although it “sees benefits in advanced metering,” the two utilities had “failed to provide sufficient evidence to persuade...

Kentucky Public Service Commission approves Big Rivers exit as Henderson power plant operator

The Kentucky Public Service Commission has relieved Big Rivers Electric Corp. (BREC) of any continuing obligation to operate an electric power plant for the city of Henderson. In an order issued today, the PSC determined that Henderson’s Station Two power plant “is no longer economically viable.” That finding echoes a provision in the contract under which BREC operates the plant and confirms...

PSC completes tax-related changes to Kentucky Power Co. rates; residential monthly bills to decrease

The Kentucky Public Service Commission has completed its review of the effect of federal corporate income tax reductions on the rates of Kentucky Power Co. and ordered further reductions of those rates. In a pair of orders issued last week, the PSC approved changes that will have the net effect of reducing an average monthly residential bill by $5.90 for the remainder of 2018. The rates approved today...

Public Service Commission to take public comment on KU/LG&E Smart Meter case July 9 in Louisville

The Kentucky Public Service Commission (PSC) will hold a public meeting to provide information and receive public comments on a request by Kentucky Utilities Co. (KU) and Louisville Gas & Electric Co. (LG&E) for authorization to deploy an advanced metering system (“smart meters”) throughout the two utilities’ service areas. Details of the meeting are as follows: Monday, July 9, 5:30...

Changes coming to Kentucky’s call-before-you-dig law on July 14; financial penalties loom for violations

Beginning July 14, the Kentucky Public Service Commission will investigate excavation damage to natural gas or hazardous liquid lines to determine whether it was caused by violations of Kentucky’s call-before-you-dig law. Under a change to the law that takes effect July 14, the PSC will be able to impose financial penalties if violations are uncovered. PSC Chairman Michael Schmitt said that the stepped-up...

Public Service Commission fines City of Flemingsburg for natural gas safety violations

The Kentucky Public Service Commission (PSC) has fined the city of Flemingsburg $60,000 for safety violations that led to an explosion during repairs to a leaking natural gas line. In an order issued Thursday, the PSC levied the $60,000 civil penalty but suspended $30,000 of the fine, subject to Flemingsburg providing additional training to employees of the city’s utility system. The explosion occurred...

PSC grants rate increase to Big Sandy RECC; typical residential monthly bills to rise by about $7

The Kentucky Public Service Commission has granted Big Sandy Rural Electric Cooperative Corporation a revenue increase slightly larger than the amount requested by the electric distribution cooperative. With the rate increase granted by the PSC, a typical Big Sandy RECC residential customer will see their average monthly electric bill rise by about $7. That includes a $6.25 increase in the monthly...

As warm weather approaches PSC reminding Kentuckians to call 811 before you dig

With the arrival of warmer weather, homeowners, contractors and others are getting outside to work on projects that have been on hold through the winter. This increase in excavation activity is usually accompanied by an increase in the number of incidents of damage to underground utility facilities. That is why April is national Safe Digging Month. The Kentucky Public Service Commission (PSC) is joining...

Public Service Commission cuts KU, LG&E bills to reflect tax changes; bills to decline by six percent

The Kentucky Public Service Commission (PSC) has reduced the total annual revenue of the Kentucky Utilities Co. (KU) and of Louisville Gas & Electric Co. (LG&E) by $203.8 million to reflect the reduction in federal corporate income taxes that took effect at the first of the year. As a result of the revenue reduction, KU and LG&E residential electric customers will see their average monthly...

Public Service Commission levies $395,000 fine on LG&E for Oldham County gas line rupture

The Kentucky Public Service Commission (PSC) has fined Louisville Gas and Electric Co. (LG&E) $395,000 for a series of violations that led to the September 2014 rupture of a high-pressure natural gas pipeline in Goshen, Oldham County. The penalty is the largest ever assessed by the PSC in a natural gas safety case. The fact that the accident occurred in close proximity to homes, a school, and...

Public Service Commission grants emergency rate increase for Martin County Water District

The Kentucky Public Service Commission (PSC) has granted Martin County Water District an emergency rate increase in order to stave off the utility’s financial collapse. In an order issued today, the PSC granted Martin County Water an annual revenue increase of about 26.5 percent, consisting of an increase in base rates and a separate surcharge that will be used by the utility to reduce its unpaid...

PSC says LG&E Louisville franchise fees should be passed through to customers as line Item on Bills

The Kentucky Public Service Commission (PSC), in a case involving Louisville Gas and Electric Co. (LG&E) and Louisville/Jefferson County Metro Government, has reiterated a decades-old policy that utility franchise fees imposed by local governments should be passed through to customers and listed as a separate line item on those customers’ utility bills. “The practical effect of franchise fees...

LG&E, KU announce coal combustion residual dry storage projects ahead of schedule, under budget

Louisville Gas and Electric Company and Kentucky Utilities Company are pleased to announce they are currently on track to fully convert next year to dry storage for coal combustion residuals — eliminating the use of ash ponds and other storage impoundments at their four coal-fired power plants. LG&E and KU first launched plans to convert to dry storage about a decade ago, before the EPA’s...

Michael J. Schmitt: PSC Chairman explains process for consideration of rate increase requests

Many Kentuckians may be unaware of the role of the Public Service Commission (PSC) in their daily lives Paraphrasing our mission statement, the PSC fosters the safe, reliable service of utilities to customers at a price that is both reasonable and also allows for the financial stability of the regulated utilities.This includes rates and service for a myriad of utilities, including electricity, natural...

LG&E, KU to double donations to third party assistance programs for customers in need

With prolonged periods of sub-freezing temperatures this winter, Louisville Gas and Electric Company and Kentucky Utilities Company will be doubling their annual support, matching $2 for every $1 donated by residential customers, to the utilities’ third-party heating assistance programs. This increased assistance will retroactively take effect starting February 1 and will continue through April 30....