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Kentucky Public Service Commission Requests Information from Kentucky Power Company

Strategic Insights

— 2 min read

Kentucky Power Company, a subsidiary of American Electric Power (AEP), is facing regulatory scrutiny from the Kentucky Public Service Commission (PSC) following the January 5, 2025, and February 15, 2025, major event storms. The PSC has issued a regulatory document requesting that Kentucky Power provide detailed information regarding the company's response to the storms, including estimated costs, operating and maintenance expenses, and the establishment of a regulatory asset. The Commission is demanding that the company provide an electronic version of the requested information by March 14, 2025.

Key Takeaways:

  • The Kentucky Public Service Commission has issued a regulatory document (Case No. 2025-00031) requesting information from Kentucky Power Company regarding the company's response to the January 5, 2025, and February 15, 2025, major event storms.
  • The Commission is asking Kentucky Power to provide a breakdown of estimated costs for contractors used during the storms, as well as operating and maintenance expenses.
  • The PSC has directed Kentucky Power to the Commission's July 22, 2021, Order in Case No. 2020-000851 regarding filings with the Commission.
  • All requested information must be filed electronically in a portable document format (PDF) and be searchable.
  • The Commission has given Kentucky Power until March 14, 2025, to provide the requested information.
  • For the January 5, 2025, storm, Kentucky Power is asked to provide a breakdown of miscellaneous incremental costs totaling $650,189.
  • The company is also asked to explain how it approximated $1,000,000 in miscellaneous incremental expenses related to the February 15, 2025, distribution costs.
  • The Commission has requested information regarding storm damage operating and maintenance expenses for 2024 and year-to-date storm damage operating expenses.
  • Kentucky Power has been directed to confirm its use of a specific level of total distribution major and non-major storm project expense in the 12-month period ending March 31, 2023.
  • The company is asked to explain its policy for determining when to seek a regulatory asset for storm or other weather-related expenses.

Statistics:

  • Estimated costs for contractors used during the January 5, 2025, storm: not specified
  • Estimated costs for contractors used during the February 15, 2025, storm: not specified
  • Miscellaneous incremental costs for the January 5, 2025, storm: $650,189
  • Approximated miscellaneous incremental expenses for the February 15, 2025, distribution costs: $1,000,000
  • Year-to-date storm damage operating and maintenance expenses: not specified
  • Storm damage operating and maintenance expenses for 2024: not specified
  • Total distribution major and non-major storm project expense for the 12-month period ending March 31, 2023: $7.3 million

Sources:

  • Case No. 2025-00031, COMMONWEALTH OF KENTUCKY BEFORE THE PUBLIC SERVICE COMMISSION In the Matter of: ELECTRONIC APPLICATION OF KENTUCKY POWER COMPANY FOR AN ORDER APPROVING ACCOUNTING PRACTICES TO ESTABLISH A REGULATORY ASSET RELATED TO THE EXTRAORDINARY EXPENSES INCURRED BY KENTUCKY POWER COMPANY IN CONNECTION WITH THE JANUARY 5, 2025 AND FEBRUARY 15, 2025 MAJOR EVENT STORMS
  • Case No. 2020-000851, Electronic Emergency Docket Related to the Novel Coronavirus COVID-19
  • Case No. 2023-00159, Electronic Application of Kentucky Power Company for (2) A General Adjustment of its Rates for Electric Service; (2) Approval of Tariffs and Riders; (3) Approval of Accounting Practices to Establish Regulatory Assets and Liabilities (4) A Securitization Financing Order; and (5) All Other Required Approvals and Relief

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