Kentucky Public Service Commission Suspends Columbia Gas of Kentucky's Rate Adjustment Proposal

Strategic Insights -

The Kentucky Public Service Commission (PSC) has issued an order suspending Columbia Gas of Kentucky, Inc.'s proposed rate adjustment, citing that an investigation is necessary to determine the reasonableness of the proposed rates. The proposed rates, which would have taken effect on July 1, 2024, have been suspended for six months, up to and including January 1, 2025.

In the order, the PSC notes that Columbia Gas of Kentucky's application proposed a rate adjustment based on a forecasted test period, and that the company requested that new rates become effective on July 1, 2024. However, the Commission finds that an investigation is necessary to determine the reasonableness of the proposed rates, and that an investigation cannot be completed by July 1, 2024. As a result, the Commission has suspended the effective date of the proposed rates.

The PSC has also established a procedural schedule for the orderly processing of this case, which includes deadlines for intervention requests, initial and supplemental requests for information, and testimony. Additionally, the Commission has set forth specific guidelines for the conduct of public hearings, including the prohibition of opening statements and summarizations of direct testimonies.

The Commission's order is a significant development in the ongoing debate over Columbia Gas of Kentucky's proposed rate adjustment. The company's proposal has sparked concerns among ratepayers and consumer advocacy groups, who argue that the rate increase would be unfair and burdened low-income households.

Key Takeaways:

  • The Kentucky Public Service Commission has suspended Columbia Gas of Kentucky's proposed rate adjustment for six months, up to and including January 1, 2025.
  • The Commission has established a procedural schedule for the orderly processing of this case, including deadlines for intervention requests, initial and supplemental requests for information, and testimony.
  • The Commission has set forth specific guidelines for the conduct of public hearings, including the prohibition of opening statements and summarizations of direct testimonies.
  • The Commission has directed Columbia Gas of Kentucky to provide responses to all requests for information propounded by Commission Staff.
  • The Commission has also set forth guidelines for intervention in the proceeding, requiring parties to demonstrate either a special interest in the proceeding or issues and facts that will assist the Commission in fully considering the matter.

Statistics:

  • The proposed rate adjustment would have taken effect on July 1, 2024.
  • The Commission has suspended the effective date of the proposed rates for six months, up to and including January 1, 2025.
  • The procedural schedule established by the Commission includes deadlines for:

+ Intervention requests: 06/14/2024

+ Initial requests for information: 06/21/2024

+ Supplemental requests for information: 07/24/2024

+ Intervenor testimony: 08/14/2024

+ Rebuttal testimony: 09/20/2024

Sources:

  • Kentucky Public Service Commission, Order in Case No. 2024-00092, dated June 05, 2024.
  • 807 KAR 5:001, Section 2, and 9(2).
  • KRS 278.180(1), and 278.360.