Duke Energy Kentucky Ordered to Provide Additional Information on IRP Submission

Strategic Insights -

The Kentucky Public Service Commission (PSC) has issued an order requiring Duke Energy Kentucky, Inc. to provide additional information on its Integrated Resource Plan (IRP) submission. The order, dated December 16, 2024, directs Duke Kentucky to provide detailed responses to 9 specific questions regarding its IRP, including information on startup failures, natural gas combined cycle unit construction, and demand side management.

Key Takeaways:

  • Duke Energy Kentucky, Inc. must provide detailed responses to 9 specific questions regarding its IRP submission, including information on startup failures, natural gas combined cycle unit construction, and demand side management.
  • The PSC is seeking clarification on Duke Kentucky's commitment to a large energy-intensive commercial customer and the potential impact on its load forecast.
  • The order requires Duke Kentucky to provide an updated load forecast based on a hypothetical energy-intensive customer and to rerun its EnCompass model's resource optimization and production cost routines for its six optimized portfolios.
  • The PSC is also seeking information on Duke Kentucky's preferred portfolio and the differences in cumulative costs throughout the forecast period.
  • The commission is concerned about the impact of EPA penalties on Duke Kentucky's operations and is seeking clarification on the connection to coal-fired units.

Statistics:

  • The PSC has requested that Duke Kentucky provide an updated load forecast based on a hypothetical energy-intensive customer requiring more than 100 long-term employees (Table 6.1, pages 43-45).
  • The commission is seeking clarification on the commitment of a large energy-intensive commercial customer and the associated present value revenue requirement (PVRR) for the new analyses run similar to that provided in Duke Kentucky's response to Staff's First Request, Item 18.
  • The order requires Duke Kentucky to provide an updated load forecast based on a hypothetical energy-intensive customer requiring less than 50 long-term employees after construction
  • The PSC has requested that Duke Kentucky run the EnCompass model's resource optimization and production cost routines for its six optimized portfolios, including the associated PVRR (pages 43-45).

Sources:

  • Case No. 2024-00197 Commonwealth of Kentucky Before the Public Service Commission In the Matter of: Electronic 2024 Integrated Resource Plan of Duke Energy Kentucky, Inc. PSC Order, December 16, 2024
  • Case No. 2024-00354 Direct Testimony of Ibrar A. Khera, page 7, lines 1 through 4, and the hearing video transcript of 2024-00197, time stamps 07:12:12-07:12:36 and 07:12:49-07:13:27
  • Case No. 2024-00285 Application, page 11
  • Duke Energy Kentucky, Inc. Response to Commission Staff's First Request, Item 18, Attachment, Tab Figure 6.1 PVRR ($000) - Optimized With EPA CAA Section 111 Update and Tab Figure 6.3 PVRR ($000) - Optimized Without EPA CAA Section 111 Update.