Kentucky Public Service Commission Suspends Duke Energy's Economic Development Agreement with Diversey

Strategic Insights -

The Kentucky Public Service Commission issued an order on November 22, 2022, suspending the effective date of Duke Energy Kentucky, Inc.'s (Duke Kentucky) proposed Economic Development Incentive Service Agreement with Diversey, Inc. The agreement aims to reduce Duke Kentucky's rates for Diversey, with the effective date set for no later than July 1, 2023. However, the Commission found that an investigation is necessary to determine the reasonableness of the proposed agreement, and therefore, suspended the effective date for five months, up to and including April 22, 2023.

Key Takeaways:

  • The Kentucky Public Service Commission issued an order on November 22, 2022, suspending the effective date of Duke Energy Kentucky, Inc.'s (Duke Kentucky) proposed Economic Development Incentive Service Agreement with Diversey, Inc.
  • The agreement aims to reduce Duke Kentucky's rates for Diversey, with the effective date set for no later than July 1, 2023.
  • The Commission found that an investigation is necessary to determine the reasonableness of the proposed agreement and suspended the effective date for five months, up to and including April 22, 2023.
  • The Commission directed Duke Kentucky to use electronic filing procedures, consistent with the filing procedures set forth in Case No. 2020-00085.
  • The Commission established a procedural schedule to review the reasonableness of the proposed agreement, which is attached as Appendix A to the order.
  • The Commission requires Duke Kentucky to give notice of the hearing and include specific statements in the notice, such as the hearing being streamed live and the possibility of public comments.
  • The Commission does not look favorably upon motions for continuance and requires good cause to be shown for granting extensions of time or moving to excuse witnesses from testifying.
  • The agreement will be reviewed after the five-month suspension period, and the Commission may enter further orders in this matter.

Statistics:

  • The effective date of the proposed agreement was set for no later than July 1, 2023.
  • The Commission suspended the effective date for five months, up to and including April 22, 2023.
  • 30 days' notice is required before making changes to any rate, as stated in KRS 278.180(1).
  • 807 KAR 5:001, Section 8(9) requires Duke Kentucky to file a written statement waiving any right to service of Commission Orders by United States mail and possessing facilities to receive electronic submissions.
  • A digital video recording will be made of the hearing, pursuant to KRS 278.360 and 807 KAR 5:001, Section 9(9).

Sources:

  • The Kentucky Public Service Commission, Case No. 2022-00394, Order (November 22, 2022)
  • KRS 278.030
  • KRS 278.180(1)
  • 807 KAR 5:001, Section 8
  • 807 KAR 5:001, Section 9(2)
  • 807 KAR 5:001, Section 9(9)
  • Case No. 2020-00085, Electronic Emergency Docket Related to the Novel Coronavirus COVID-19 (Ky. PSC July 22, 2021)