Kentucky Public Service Commission Approves Territorial Changes for KU and Inter-County Energy Cooperative Corporation

Strategic Insights -

The Kentucky Public Service Commission has approved the agreement between Kentucky Utilities Company (KU) and Inter-County Energy Cooperative Corporation (Inter-County Energy) to redraw the certified service territory boundary line. The agreement will allow KU to extend its electric service to a new distillery in Lancaster, Kentucky, and correct an error on the Commission's certified Quadrant Map 30-G-3, which shows properties in Stanford, Kentucky, currently served by Inter-County Energy, but listed as being in KU's territory.

Key Takeaways:

  • The Commission approved the agreement between KU and Inter-County Energy, which will promote the purposes of KRS 278.016 and provide adequate and reasonable service to all areas and consumers affected by the contract.
  • The agreement involves transferring a tract from Inter-County Energy to KU, which includes new rick house storage buildings to be constructed by an existing distillery at 450 Southern Soul Way in Lancaster, Kentucky.
  • KU currently serves the distillery constructing the new rick houses and has distribution facilities in the area, making it the most suitable utility to extend its electric service to the new facilities.
  • The existing distillery's other facilities are currently served by KU, and the agreement will allow KU to extend its service to the new rick houses, eliminating the need for duplication of distribution facilities.
  • Inter-County Energy will transfer a tract to KU, which includes existing residential subdivision homes, a mobile home park, and a Sonic restaurant located in Stanford, Kentucky.
  • The agreement will correct an error on the Commission's certified Quadrant Map 30-G-3, which shows properties in Stanford, Kentucky, currently served by Inter-County Energy, but listed as being in KU's territory.
  • No customers will change providers, but maps will be changed to reflect the providers currently providing service to those properties.
  • Both utilities will be able to provide adequate, reliable, and reasonable service to all affected areas and customers.
  • The Commission finds that the agreement between KU and Inter-County Energy will promote the purposes of KRS 278.016 and will provide adequate and reasonable service to all areas and consumers affected by the contract.

Statistics:

  • The agreement involves transferring a tract from Inter-County Energy to KU, which includes new rick house storage buildings to be constructed by an existing distillery at 450 Southern Soul Way in Lancaster, Kentucky.
  • The distillery's new rick houses will be located on land that is currently in Inter-County Energy's service territory, near the boundary line with KU's territory.
  • The agreement will correct an error on the Commission's certified Quadrant Map 30-G-3, which shows properties in Stanford, Kentucky, currently served by Inter-County Energy, but listed as being in KU's territory.
  • Inter-County Energy has been serving these properties for over ten years, and has existing distribution facilities in the area.
  • No customers will change providers, but maps will be changed to reflect the providers currently providing service to those properties.

Sources:

  • Kentucky Public Service Commission, Case No. 2024-00327
  • Kentucky Revised Statutes, Chapter 278 (Electric Services)
  • Application of Kentucky Utilities Company for Authorization of Changes in Service Territory with Inter-County Energy Cooperative Corporation, filed with the Kentucky Public Service Commission.