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Kentucky Public Service Commission Orders Columbia Gas of Kentucky, Inc. to Provide Additional Information

Strategic Insights

— 2 min read

The Kentucky Public Service Commission (PSC) has directed Columbia Gas of Kentucky, Inc. (Columbia Kentucky) to provide additional information regarding its Performance-Based Ratemaking (PBR) mechanism. Pursuant to 807 KAR 5:001, Columbia Kentucky is required to file an electronic version of the requested information by May 8, 2024. The Commission has also referred Columbia Kentucky to its July 22, 2021 Order in Case No. 2020-000851 regarding filings with the Commission.

Columbia Kentucky is requested to provide detailed information on its PBR mechanism, including its implementation, benefits, and comparison to competitive market activity. The company is also required to provide side-by-side comparisons of gas costs saved by customers under the PBR mechanism and the amount of gas cost collected through Columbia Kentucky's Gas Cost Adjustment (GCA) Clause. Additionally, Columbia Kentucky must provide annual reports for the PBR mechanism filed since the June 6, 2022 final Order in Case No. 2020-003782.

The PSC has also requested information on the incentives and least cost acquisition standard in purchasing natural gas supplies and pipeline transportation services absent a PBR mechanism. Moreover, Columbia Kentucky is required to provide detailed examples of incremental benefits it has achieved under the PBR mechanism, including the costs and expenses incurred by the company and its customers.

Key Takeaways:

  • Columbia Gas of Kentucky, Inc. (Columbia Kentucky) is required to provide additional information regarding its Performance-Based Ratemaking (PBR) mechanism to the Kentucky Public Service Commission (PSC).
  • The requested information includes implementation, benefits, and comparison to competitive market activity, as well as side-by-side comparisons of gas costs saved by customers under the PBR mechanism and the amount of gas cost collected through Columbia Kentucky's Gas Cost Adjustment Clause.
  • Columbia Kentucky is required to provide annual reports for the PBR mechanism filed since the June 6, 2022 final Order in Case No. 2020-003782.
  • The PSC has requested information on the incentives and least cost acquisition standard in purchasing natural gas supplies and pipeline transportation services absent a PBR mechanism.
  • Columbia Kentucky is required to provide detailed examples of incremental benefits it has achieved under the PBR mechanism, including the costs and expenses incurred by the company and its customers.
  • Columbia Kentucky must provide justification to support claims related to the PBR mechanism, including benefits and savings for customers and the company.
  • The company is also required to describe its storage practices and the use of storage in the PBR mechanism.

Statistics:

  • Columbia Gas of Kentucky, Inc. has been operating under a PBR mechanism since [insert date].
  • The PBR mechanism has resulted in [insert amount] in gas costs saved by customers.
  • Columbia Kentucky has filed [insert number] annual reports for the PBR mechanism since the June 6, 2022 final Order in Case No. 2020-003782.
  • The company has achieved [insert number] incremental benefits under the PBR mechanism, resulting in [insert amount] in costs and expenses saved by customers.

Sources:

  • Commonwealth of Kentucky, Public Service Commission. (July 22, 2021). Case No. 2020-000851, Electronic Emergency Docket Related to the Novel Coronavirus COVID-19.
  • Commonwealth of Kentucky, Public Service Commission. (June 6, 2022). Case No. 2020-003782, Electronic Application Of Columbia Gas of Kentucky, Inc. to Extend Its Gas Cost Incentive Adjustment Performance Based Rate Making Mechanism.
  • Columbia Gas of Kentucky, Inc. (2024). Case No. 2024-00012, Commonwealth of Kentucky Before the Public Service Commission.

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