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Kentucky Public Service Commission Issues Order on Kentucky-American Water Company's Qualified Infrastructure Program (QIP) Charge Case

Strategic Insights

— 1 min read

The Kentucky Public Service Commission has issued an order regarding Kentucky-American Water Company's Qualified Infrastructure Program (QIP) charge case, Case No. 2023-00300. In the order, the Commission addresses various requests from Kentucky-American, including adjusting the timing of its future QIP filings and revising the authorized revenues used to determine the approved QIP Rider Charge. After careful review, the Commission granted part of Kentucky-American's petition for rehearing and denied other parts.

Key Takeaways:

  • The Commission granted Kentucky-American's request to adjust the timing of its future QIP filings, beginning with QIP 6, to maximize efficient construction of QIP projects by eliminating QIP years straddling pipeline construction season.
  • The Commission denied Kentucky-American's request to adjust the authorized revenues used to determine the approved QIP Rider Charge to reflect corrections in Case No. 2023-00191.
  • The Commission denied Kentucky-American's request to change the effective date of the QIP Rider Charges, citing the true-up mechanism in the QIP Rider Charges to correct for over- or under-recovery.
  • The Commission established a procedural schedule for the orderly processing of matters addressed in the Order, with Kentucky-American required to respond to all requests for information propounded by Commission Staff.
  • The remainder of the May 3, 2024 Order not in conflict with this Order remains in effect.

Statistics:

  • QIP 6 filings will begin with a revised schedule to eliminate straddling of QIP years over pipeline construction season.
  • Authorized revenues used to determine the QIP Rider Charge will not be revised to reflect corrections in Case No. 2023-00191.
  • The true-up mechanism in the QIP Rider Charges will correct for over- or under-recovery.
  • The procedural schedule set by the Commission includes deadlines for Kentucky-American to respond to requests for information:

+ All requests for information to Kentucky-American shall be filed no later than June 14, 2024.

+ Kentucky-American shall file responses to requests for information no later than June 28, 2024.

Sources:

  • Order of the Kentucky Public Service Commission in Case No. 2023-00300 dated June 10, 2024.
  • Kentucky-American Water Company's Petition for Rehearing submitted on May 3, 2024 (Case No. 2023-00191).
  • Kentucky Public Service Commission's Order dated May 3, 2024 (Case No. 2023-00191).
  • Kentucky Public Service Commission's Order dated May 28, 2024 (Case No. 2023-00191).

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