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East Kentucky Power Cooperative's Data Center Tariff Regulation

Strategic Insights

— 2 min read

In a recent regulatory document issued by the Kentucky Public Service Commission, East Kentucky Power Cooperative (EKPC) has established a new tariff for data centers, sparking interest among energy industry stakeholders. The tariff aims to provide a clear framework for energy supply and cost recovery for data centers, while also ensuring the interests of existing customers are protected. As part of the regulatory process, EKPC has responded to the Attorney General's First Information Request dated June 30, 2025, providing insight into the company's approach to serving data centers.

Key Takeaways:

  • The proposed tariff defines "load factor" as the ratio of average load to maximum load over a specific period, with a 100 MW peak demand resulting in a 100% load factor.
  • For loads exceeding 250 MW, the tariff requires dedicated resources, which can take the form of self-supplied generation, EKPC-owned generation, or bilateral market purchases.
  • EKPC believes that using a project financing model for dedicated resources can minimize financial risk to non-data center customers.
  • The tariff requires data centers to pay costs of incremental generation, transmission, and other costs driven by their service.
  • EKPC intends to use "hold harmless" language in the tariff to benefit non-data center customers.
  • Load served under the proposed data center tariff is eligible for EKPC's Rate D - Interruptible Power.

Statistics:

  • 100% load factor: A load with a 100 MW peak demand that uses 100 MW for an entire hour.
  • 50% load factor: A load with a 100 MW peak demand that uses 50 MW for an entire hour.
  • 250 MW: The threshold for requiring dedicated resources under the proposed tariff.
  • 100%: The proportion of EKPC's generating resources that pre-existed the Qualifying Customer occupied by the data center load.

Sources:

  • COMMONWEALTH OF KENTUCKY BEFORE THE PUBLIC SERVICE COMMISSION, In the Matter of: ELECTRONIC TARIFF FILING OF EAST ) KENTUCKY POWER COOPERATIVE, INC. TO ) ESTABLISH A NEW TARIFF FOR DATA CENTER ) POWER ) STATE OF KENTUCKY ) ) COUNTY OF CLARK ) CERTIFICATE CASE NO. 2025-00140
  • AG Request 1, PAGE 1 OF 1, EAST KENTUCKY POWER COOPERATIVE, INC. CASE NO. 2025-00140 FIRST REQUEST FOR INFORMATION RESPONSE
  • AG Request 2, PAGE 1 OF 1, EAST KENTUCKY POWER COOPERATIVE, INC. CASE NO. 2025-00140 FIRST REQUEST FOR INFORMATION RESPONSE
  • AG Request 3, PAGE 1 OF 1, EAST KENTUCKY POWER COOPERATIVE, INC. CASE NO. 2025-00140 FIRST REQUEST FOR INFORMATION RESPONSE
  • AG Request 4, PAGE 1 OF 2, EAST KENTUCKY POWER COOPERATIVE, INC. CASE NO. 2025-00140 FIRST REQUEST FOR INFORMATION RESPONSE
  • AG Request 5, PAGE 1 OF 1, EAST KENTUCKY POWER COOPERATIVE, INC. CASE NO. 2025-00140 FIRST REQUEST FOR INFORMATION RESPONSE
  • AG Request 6, PAGE 1 OF 1, EAST KENTUCKY POWER COOPERATIVE, INC. CASE NO. 2025-00140 FIRST REQUEST FOR INFORMATION RESPONSE
  • AG Request 7, PAGE 1 OF 2, EAST KENTUCKY POWER COOPERATIVE, INC. CASE NO. 2025-00140 FIRST REQUEST FOR INFORMATION RESPONSE
  • AG Request 8, PAGE 1 OF 1, EAST KENTUCKY POWER COOPERATIVE, INC. CASE NO. 2025-00140 FIRST REQUEST FOR INFORMATION RESPONSE

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