Kentucky Public Service Commission Reconsiders Solar Power Contracts for Two Companies

Strategic Insights -

The Kentucky Public Service Commission has reexamined the solar power contracts between Louisville Gas and Electric Company, Kentucky Utilities Company, and their customers under the Green Tariff Option #3. The Commission's original order, issued May 8, 2020, approved two 20-year renewable power agreements between Kentucky Utilities Company and Toyota Motor Manufacturing, Kentucky, Inc. and Dow Silicones Corporation, with modifications. However, the companies have requested reconsideration of the Fuel Adjustment Clause approach and the Green Tariff modifications.

Key Takeaways:

  • The Kentucky Public Service Commission has reconsidered the solar power contracts between Louisville Gas and Electric Company, Kentucky Utilities Company, and their customers under the Green Tariff Option #3.
  • The original order, issued May 8, 2020, approved two 20-year renewable power agreements between Kentucky Utilities Company and Toyota Motor Manufacturing, Kentucky, Inc. and Dow Silicones Corporation, with modifications.
  • The companies have requested reconsideration of the Fuel Adjustment Clause approach and the Green Tariff modifications.
  • The Attorney General of the Commonwealth of Kentucky filed a response to the petition for reconsideration and clarification, addressing the issues raised by the companies.
  • The companies have filed a reply in support of their request for reconsideration.

Statistics:

  • Two 20-year renewable power agreements were approved between Kentucky Utilities Company and Toyota Motor Manufacturing, Kentucky, Inc. and Dow Silicones Corporation (Toyota and Dow).
  • The agreements are subject to certain modifications.
  • The Fuel Adjustment Clause (FAC) approach for the PPA is under reconsideration.
  • The Green Tariff modifications are also under reconsideration.

Sources:

  • COMMONWEALTH OF KENTUCKY BEFORE THE PUBLIC SERVICE COMMISSION In the Matter of: ELECTRONIC APPLICATION OF LOUISVILLE GAS AND ELECTRIC COMPANY AND KENTUCKY UTILITIES COMPANY FOR APPROVAL OF A SOLAR POWER CONTRACT AND TWO RENEWABLE POWER AGREEMENTS TO SATISFY CUSTOMER REQUESTS FOR A RENEWABLE ENERGY SOURCE UNDER GREEN TARIFF OPTION #3
  • https://psc.ky.gov/pscscf/2020%20Cases/2020-00016//20200618_PSC_ORDER.pdf