Kentucky Public Service Commission Denies Duke Energy's Request for Abbreviated Rate Notice

Strategic Insights -

The Kentucky Public Service Commission (PSC) has denied Duke Energy Kentucky, Inc.'s (Duke Kentucky) request to publish an abbreviated customer notice for its proposed rate adjustment. In its order, issued on May 7, 2025, the PSC found that Duke Kentucky's proposed abbreviated notice lacked key components required by Commission regulation KAR 5:001, Section 17(4), and therefore denied the request.

According to the PSC's order, Duke Kentucky had filed a motion to publish an abbreviated notice of its proposed rate adjustment, which would have included only the complete notice required by the Commission's regulation for residential natural gas rates, as well as an abbreviated notice of the adjustments to non-residential rates. The PSC, however, found that the proposed abbreviated notice did not include sufficient information for customers to understand the rate adjustment, particularly with regards to the quarterly nature of the adjustment and potential changes to tariffs.

The PSC also noted that if Duke Kentucky wishes to refile a request for an abbreviated notice, it should ensure that the abbreviated notice includes any changes to tariffs affecting rates and services, all of the residential rate changes, including any changes to nonrecurring charges, and a redline copy of the proposed tariff changes.

Key Takeaways:

  • The Kentucky Public Service Commission (PSC) has denied Duke Energy Kentucky, Inc.'s (Duke Kentucky) request to publish an abbreviated customer notice for its proposed rate adjustment.
  • The PSC found that Duke Kentucky's proposed abbreviated notice lacked key components required by Commission regulation KAR 5:001, Section 17(4), and therefore denied the request.
  • The proposed abbreviated notice did not include sufficient information for customers to understand the rate adjustment, particularly with regards to the quarterly nature of the adjustment and potential changes to tariffs.
  • Duke Kentucky was required to publish six notices in newspapers of general circulation in its service area for three consecutive weeks.
  • The PSC found that the abbreviated notice would have cost approximately $10,000, while publishing the full notice would have cost $50,000.
  • Duke Kentucky's application to adjust its rates included a request to use abbreviated notice procedures for its proposed rate adjustment.
  • The Commission's regulation 807 KAR 5:001, Section 16(2) permits a utility to file a request to the Commission to allow abbreviated newspaper notice after a notice of intent for an application of an adjustment of rates has been filed.
  • The Commission's regulation 807 KAR 5:001, Section 22 allows the Commission to grant deviation from the regulations for good cause shown.

Statistics:

  • The cost of publishing the full notice would have been $50,000, while the cost of publishing the abbreviated notice would have been $10,000.
  • The abbreviated notice would have contained the complete notice required by the Commission's regulation for residential natural gas rates, as well as an abbreviated notice of the adjustments to non-residential rates.
  • The proposed abbreviated notice would have included a hyperlink to the location on the Public Service Commission's website where case documents and tariff filing are available.
  • The Commission's regulation 807 KAR 5:001, Section 22 allows the Commission to grant deviation from the regulations for good cause shown.
  • Duke Kentucky provided a copy of its proposed abbreviated notice as part of its motion.

Sources:

  • Kentucky Public Service Commission Order No. 2025-00125 (May 7, 2025)
  • Duke Energy Kentucky, Inc. Abbreviated Notice Motion (filed Apr. 17, 2025)