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Kentucky Public Service Commission Approves Kentucky Utilities Company's Application for Certificate of Public Convenience and Necessity

Strategic Insights

— 2 min read

The Kentucky Public Service Commission has issued an order approving Kentucky Utilities Company's (KU) application for a Certificate of Public Convenience and Necessity (CPCN) to bid on a franchise established by the city of Ferguson, Kentucky. The order, dated April 8, 2024, grants KU the authority to bid on the franchise for electric transmission and distribution service, subject to certain conditions.

The Commission's decision is based on its finding that there is evidence of a need and demand for electric transmission and distribution service in the city of Ferguson. The order does not address the qualifications of the bidder, the validity of the franchise offered by the city, or the treatment of the franchise fee for rate purposes.

Key Takeaways:

  • The Kentucky Public Service Commission has approved Kentucky Utilities Company's application for a Certificate of Public Convenience and Necessity to bid on a franchise established by the city of Ferguson, Kentucky.
  • The franchise is for electric transmission and distribution service, and the order grants KU the authority to bid on the franchise subject to certain conditions.
  • The Commission's decision is based on its finding that there is evidence of a need and demand for electric transmission and distribution service in the city of Ferguson.
  • The order does not address the qualifications of the bidder, the validity of the franchise offered by the city, or the treatment of the franchise fee for rate purposes.
  • The Commission directs KU to its July 22, 2021 Order in Case No. 2020-00085, regarding filings with the Commission.
  • KU is required to file written notice with the Commission within ten days of the award of the franchise if it is not the successful bidder.
  • If KU is the successful bidder, it must file a copy of the executed franchise agreement and a statement disclosing the amount of the initial franchise fee with the Commission within ten days.

Statistics:

  • The order was issued on April 8, 2024.
  • The application was filed by Kentucky Utilities Company on March 27, 2024.
  • The franchise agreement was approved by the city of Ferguson on March 4, 2024.
  • Public notice of the sale of the franchise was published on March 22, 2024.
  • The Commission's authority in such matters is limited by statute to finding only whether there is a need and demand for the service sought to be rendered.

Sources:

  • Kentucky Public Service Commission. Order in Case No. 2024-00070 (April 8, 2024).
  • KRS Chapter 96.
  • KRS 278.020(5).
  • Kentucky Public Service Commission. Order in Case No. 2020-00085 (July 22, 2021).

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