Kentucky Public Service Commission Suspends Blue Grass Energy Cooperative's Rate Adjustment

Strategic Insights -

The Kentucky Public Service Commission has suspended the effective date of Blue Grass Energy Cooperative's proposed rate adjustment for five months, up to and including January 31, 2026. This decision was made after Blue Grass Energy requested to pass through any wholesale rate adjustment granted to its supplier, East Kentucky Power Cooperative, Inc. The Commission also established a procedural schedule to review the reasonableness of the proposed rates and outlined rules for intervention, public hearings, and witness testimony.

Key Takeaways:

  • The Kentucky Public Service Commission has suspended the effective date of Blue Grass Energy Cooperative's proposed rate adjustment for five months, up to and including January 31, 2026.
  • The suspension is due to the requirement of 30 days' notice to the Commission before a change in utility rates, as stated in KRS 278.180(1).
  • The Commission established a procedural schedule to review the reasonableness of the proposed rates, including deadlines for intervention requests, initial requests for information, and witness testimony.
  • Blue Grass Energy must file a witness list at least seven days prior to the hearing date and ensure that digital video recordings of the hearing are made.
  • The Commission does not look favorably upon motions for continuance or motions to substitute witnesses or excuse witnesses from testifying.

Statistics:

  • The proposed rate adjustment was filed on August 1, 2025.
  • The suspension period is five months, up to and including January 31, 2026.
  • The procedural schedule includes the following deadlines:

+ Last day for intervention requests to be accepted: September 4, 2025

+ Initial requests for information to Blue Grass Energy: September 11, 2025

+ Blue Grass Energy's responses to initial requests for information: September 22, 2025

+ Supplemental requests for information to Blue Grass Energy: October 6, 2025

+ Intervenor testimony, if any, in verified prepared form: October 30, 2025

  • The Commission has directed Blue Grass Energy to file a witness list at least seven days prior to the hearing date.

Sources:

  • Case No. 2025-00220, Electronic Application of Blue Grass Energy Cooperative Corporation for pass-through of East Kentucky Power Cooperative, Inc.'s wholesale rate adjustment
  • KRS 278.455(2)
  • KRS 278.180(1)
  • 807 KAR 5:001, Section 8
  • 807 KAR 5:001, Section 9(2)
  • July 22, 2021 Order in Case No. 2020-000853
  • Case No. 2020-00085, Electronic Emergency Docket Related to the Novel Coronavirus COVID-19 (Ky. PSC July 22, 2021)