Kentucky Public Service Commission Grants Confidential Treatment to East Kentucky Power Cooperative's Contract with ACES Power Marketing, LLC

Strategic Insights -

The Kentucky Public Service Commission has issued an order granting confidential treatment to East Kentucky Power Cooperative, Inc.'s (EKPC) contract with ACES Power Marketing, LLC for 20 years. The contract, which provides energy management services to EKPC, contains proprietary and commercially sensitive information that could undermine EKPC's competitive edge and increase costs if disclosed. EKPC argued that disclosing this information would commercially harm the cooperative and its owner-members, and that the Kentucky Open Records Act exempts from disclosure confidential information that would permit an unfair advantage to third parties.

Key Takeaways:

  • The Kentucky Public Service Commission has granted confidential treatment to EKPC's contract with ACES Power Marketing, LLC for 20 years.
  • The contract provides energy management services to EKPC in two key areas: Trading and Counterparty Controls, and Risk Policies, Portfolio Strategy, and Management.
  • EKPC argued that disclosing the contract would commercially harm the cooperative and its owner-members by allowing competitors to develop strategies that could undermine EKPC's competitive edge and increase costs.
  • The Kentucky Open Records Act exempts from disclosure confidential information that would permit an unfair advantage to third parties.
  • The Commission found that EKPC's response to Staff's First Request, Item 8d, which relates to information concerning the inner workings of the corporation, is generally recognized as confidential or proprietary.
  • The designated material granted confidential treatment by this Order shall not be placed in the public record or made available for public inspection for 20 years or until further order of this Commission.
  • Use of the designated material granted confidential treatment by this Order in any Commission proceeding shall comply with 807 KAR 5:001, Section 13(9).
  • If the designated material granted confidential treatment by this Order becomes publicly available or no longer qualifies for confidential treatment, EKPC shall inform the Commission and file with the Commission an unredacted copy of the designated material.
  • If a nonparty to this proceeding requests to inspect the material granted confidential treatment by this Order and the period during which the material has been granted confidential treatment has not expired, EKPC shall have 30 days from receipt of written notice of the request to demonstrate that the material still falls within the exclusions from disclosure requirements established in KRS 61.878.

Statistics:

  • The contract between EKPC and ACES Power Marketing, LLC will remain confidential for 20 years.
  • The contract provides energy management services to EKPC in two key areas: Trading and Counterparty Controls, and Risk Policies, Portfolio Strategy, and Management.
  • 807 KAR 5:001, Section 13(9) sets forth the requirements for use of the designated material granted confidential treatment by this Order in any Commission proceeding.
  • KRS 61.878 establishes the exclusions from disclosure requirements that EKPC must demonstrate in order to maintain confidentiality of the material.

Sources:

  • Commonwealth of Kentucky, Public Service Commission, Case No. 2024-00101, Order (September 12, 2024)
  • Commonwealth of Kentucky, Public Service Commission, Case No. 2024-00101, Motion for Confidential Treatment (May 29, 2024)
  • Hoy v. Kentucky Industrial Revitalization Authority, 907 S.W.2d 766, 768 (Ky. 1995)