Kentucky Public Service Commission Approves Fuel Adjustment Clause Rates for Kentucky Utilities Company

Strategic Insights -

The Kentucky Public Service Commission (PSC) has issued an order approving the fuel adjustment clause (FAC) rates for Kentucky Utilities Company (KU) for two separate periods: May 1, 2021, through October 31, 2021, and November 1, 2021, through April 30, 2022. The PSC found no evidence of improper calculation or application of KU's FAC charges or improper fuel procurement practices during these periods.

The FAC rates for the first period ranged from $0.02201 per kWh in May 2021 to $0.02620 per kWh in October 2021, with a six-month average of $0.02403 per kWh. For the second period, the FAC rates ranged from $0.02579 per kWh in December 2021 to $0.02860 per kWh in January 2022, with a six-month average of $0.02731 per kWh. The PSC approved the charges and credits billed by KU through its FAC for both periods.

The approval of the FAC rates is the result of a comprehensive review of KU's monthly FAC filings and a hearing held on January 4, 2024. The PSC incorporated the record of the two-year FAC review proceeding and found that the matter of the ongoing prior six-month FAC review cases now stands submitted for a decision on the written record.

Key Takeaways:

  • The Kentucky Public Service Commission approved the fuel adjustment clause rates for Kentucky Utilities Company for two separate periods.
  • The FAC rates for the first period (May 1, 2021, through October 31, 2021) ranged from $0.02201 per kWh to $0.02620 per kWh, with a six-month average of $0.02403 per kWh.
  • The FAC rates for the second period (November 1, 2021, through April 30, 2022) ranged from $0.02579 per kWh to $0.02860 per kWh, with a six-month average of $0.02731 per kWh.
  • The PSC found no evidence of improper calculation or application of KU's FAC charges or improper fuel procurement practices during these periods.
  • The approval of the FAC rates is the result of a comprehensive review of KU's monthly FAC filings and a hearing held on January 4, 2024.
  • The PSC incorporated the record of the two-year FAC review proceeding and found that the matter of the ongoing prior six-month FAC review cases now stands submitted for a decision on the written record.
  • The approval of the FAC rates was issued by the PSC on May 9, 2024.

Statistics:

  • FAC rates for the first period (May 1, 2021, through October 31, 2021): $0.02201 per kWh (May 2021) to $0.02620 per kWh (October 2021), with a six-month average of $0.02403 per kWh.
  • FAC rates for the second period (November 1, 2021, through April 30, 2022): $0.02579 per kWh (December 2021) to $0.02860 per kWh (January 2022), with a six-month average of $0.02731 per kWh.

Sources:

  • Order in Case No. 2023-00010, Kentucky Public Service Commission (May 9, 2024).
  • Order in Case No. 2022-00038, Kentucky Public Service Commission (March 31, 2022).
  • Order in Case No. 2022-00265, Kentucky Public Service Commission (September 13, 2022).