Kentucky Public Service Commission Denies Reconsideration Request for Confidential Treatment of Solar Purchase Power Agreements

The Kentucky Public Service Commission has issued an order denying a request for reconsideration of a decision regarding confidential treatment of solar purchase power agreements (PPAs) between Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU). The companies had sought to keep certain information related to the PPAs confidential, arguing that public disclosure would harm their ability to negotiate future price adjustments.

In its motion for reconsideration, LG&E/KU argued that the Commission's decision to deny confidential treatment would commercially disadvantage them and their customers. They claimed that public disclosure of the solar energy payment rates in the PPAs would prejudice their ability to negotiate future price adjustments, potentially resulting in higher costs for customers. LG&E/KU also argued that the Commission's reasoning in a previous case (Case No. 2020-00016) was distinguishable from the circumstances in this case, as the negotiation in the price-reopener clause was more akin to evaluating RFP bids that have yet to be fully accepted.

The Commission, however, was not persuaded by LG&E/KU's arguments. The Commission stated that the designated material related to the solar PPAs is necessary for the Commission to fully evaluate the terms and conditions of the agreements, and that confidential treatment would prevent transparency necessary for LG&E/KU ratepayers to know what information the Commission relied upon in rendering its final determination.

The Commission found that LG&E/KU created the issue by pleading and submitting the matters in a way that created the problem of premature public disclosure. As a result, the Commission denied the motion for reconsideration.

Key Takeaways:

• The Kentucky Public Service Commission denied a request for reconsideration of a decision regarding confidential treatment of solar purchase power agreements between LG&E and KU.
• LG&E/KU argued that public disclosure of solar energy payment rates in PPAs would harm their ability to negotiate future price adjustments and potentially result in higher costs for customers.
• The Commission found that LG&E/KU created the issue by pleading and submitting the matters in a way that created the problem of premature public disclosure.
• Confidential treatment would prevent transparency necessary for LG&E/KU ratepayers to know what information the Commission relied upon in rendering its final determination.
• The Commission considered a previous case (Case No. 2020-00016) in which a solar PPA was denied confidential treatment, but found that the circumstances in this case were distinguishable.
• LG&E/KU had requested declaratory orders stating that the four solar PPAs did not require prior Commission approval under KRS 278.020 or KRS 278.300.
• The four solar PPAs have an aggregate capacity of 637 MW.

Statistics:

• 637 MW: Aggregate capacity of the four solar PPAs.
• 4: Number of solar PPAs at issue.
• 2020: Year in which a previous case (Case No. 2020-00016) was decided.
• 278.020 and 278.300: Sections of the Kentucky Revised Statutes referenced in the Commission's decision.
• 2022-00402: Case number for the Public Service Commission proceeding.

Sources:

• Kentucky Public Service Commission. (October 10, 2023). Case No. 2022-00402. Order Denying LG&E/KU's Motion for Reconsideration.
• LG&E/KU. (September 22, 2023). Motion for Reconsideration.
• Kentucky Revised Statutes. KRS 278.400.
• Energy Regulatory Commission v. Kentucky Power Co., 605 S.W.2d 46 (Ky. App. 1980).
• Public Service Comm'n v. Conway, 324 S.W.3d 373, 377 (Ky. 2010).
• Public Service Comm'n v. Jackson County Rural Elec. Coop. Corp., 50 S.W.3d 764, 766 (Ky. App. 2000).
• National Southwire Aluminum Co. v. Big Rivers Elec. Corp., 785 S.W.2d 503, 509 (Ky. App. 1990).