Kentucky Public Service Commission Approves Louisville Gas and Electric Company's Gas Supply Clause Rate Adjustment

Strategic Insights -

The Kentucky Public Service Commission has approved Louisville Gas and Electric Company's (LG&E) proposed Gas Supply Clause (GSC) rate adjustment, effective May 1, 2024. The Commission reviews LG&E's gas purchasing practices to ensure that rates are just and reasonable, and the utility has the burden to prove that its rates are fair and reasonable. The approved rate adjustment includes a decrease in gas costs and a revised Gas Supply Cost Component of $0.29527 per 100 cubic feet, an increase of $0.2413 per Mcf from the prior GSCC.

Key Takeaways:

  • The Commission approves LG&E's proposed GSC rate adjustment, effective May 1, 2024, with a revised Gas Supply Cost Component of $0.29527 per 100 cubic feet.
  • The approved rate adjustment includes a decrease in gas costs of $0.6234 per Mcf from the previous Gas Supply Cost of $3.3919 per Mcf.
  • The Commission finds that LG&E's report sets out a fair, just, and reasonable rate, which is approved for gas supplied by LG&E on and after May 1, 2024.
  • LG&E shall submit all invoices it receives along with its monthly usage reports for each month of the reporting period when it files its future GSC rate reports.
  • Should LG&E purchase sustainable natural gas from a renewable source during the reporting period of any future GSC reports, the supplier, cost, and amount must be documented in its cover letter to the Commission.
  • The Commission requires LG&E to file revised tariff sheets setting out the approved rate within 20 days of the date of service of this Order.

Statistics:

  • The revised Gas Supply Cost Component is $0.29527 per 100 cubic feet.
  • The approved rate adjustment involves a decrease in gas costs of $0.6234 per Mcf from the previous Gas Supply Cost of $3.3919 per Mcf.
  • The current Quarter Gas Cost Actual Adjustment (GCAA) is $0.2407 per Mcf.
  • The Gas Cost Balancing Adjustment (GCBA) is ($0.0159) per Mcf.
  • The Performance-Based Rate Recovery (PBRR) Component is $0.0537 per Mcf.

Sources:

  • Commonwealth of Kentucky BEFORE THE PUBLIC SERVICE COMMISSION In the Matter of: ELECTRONIC PURCHASED GAS ADJUSTMENT FILING OF LOUISVILLE GAS AND ELECTRIC COMPANY Case No. 2024-00063 O R D E R (April 30, 2024)
  • Louisville Gas and Electric Company 220 W. Main Street P. O. Box 32010 Louisville, KY 40232-2010