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East Kentucky Power Cooperative Seeks Deviation from Financial Exhibit Rule

Strategic Insights

— 1 min read

East Kentucky Power Cooperative, Inc. has filed a motion with the Public Service Commission to deviate from the requirement of 807 KAR 5:001 Section 12(1)(a), which demands a financial exhibit for the 12-month period ending not more than 90 days prior to the application being filed. The cooperative is seeking approval to issue up to $450,000,000 of secured or unsecured private placement or bank/financial institution debt to finance capital projects. However, due to the deficiency noted by Commission Staff, EKPC is now requesting a deviation from the 90-day time limit to accommodate the submission of the financial exhibit.

Key Takeaways:

  • East Kentucky Power Cooperative, Inc. has filed a motion to deviate from 807 KAR 5:001 Section 12(1)(a), which requires a financial exhibit for the 12-month period ending not more than 90 days prior to the application being filed.
  • The cooperative is seeking approval to issue up to $450,000,000 of secured or unsecured private placement or bank/financial institution debt to finance capital projects.
  • EKPC's initial financial exhibit was deemed deficient by Commission Staff, leading to the request for deviation from the 90-day time limit.
  • The cooperative believes that the deviation is justified due to the additional good cause shown, including the requirement for year-end financial information to be complete by April 2025.
  • Granting the deviation would allow EKPC to file its financing application in a timely manner, which is crucial for securing favorable financing within the required timeframe.

Statistics:

  • $450,000,000: The maximum amount of secured or unsecured private placement or bank/financial institution debt that EKPC is seeking approval to issue.
  • 90 days: The time period required by 807 KAR 5:001 Section 12(1)(a) for the financial exhibit to be for a 12-month period ending not more than 90 days prior to the application being filed.
  • 5 days: The difference in timing between the 90-day limit and the 95-day period proposed by EKPC for the financial exhibit.
  • 2021: The year in which the Commission issued an order excusing parties from participation by electronic means in this proceeding.

Sources:

  • 807 KAR 5:001 Section 12(1)(a)
  • 807 KAR 5:001 Section 18(1)(c)
  • 807 KAR 5:001 Section 22
  • Kentucky Public Service Commission Order in Case No. 2020-00085 (July 22, 2021)
  • Certificate of Service, filed by Counsel for East Kentucky Power Cooperative, Inc. (March 5, 2025)

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