Public Service Commission Orders Kentucky Utilities Company to Provide Regulatory and Accounting Information

Strategic Insights -

The Kentucky Public Service Commission has directed the United States Department of Defense and all other Federal Executive Agencies (DOD/FEA) to provide detailed regulatory and accounting information to the Commission. The order was issued on September 10, 2025, in response to Kentucky Utilities Company's electronic application for an adjustment of its electric rates and approval of certain regulatory and accounting treatments. The Commission's order requires DOD/FEA to file an electronic version of the requested information by September 23, 2025.

Key Takeaways:

  • The Kentucky Public Service Commission has ordered the United States Department of Defense and all other Federal Executive Agencies to provide regulatory and accounting information to the Commission.
  • The Commission's order was issued on September 10, 2025, in response to Kentucky Utilities Company's electronic application for an adjustment of its electric rates and approval of certain regulatory and accounting treatments.
  • The requested information includes detailed explanations of how adjustments made to the classification of Steam Production Maintenance expense will impact the rate of return on rate base and cost-based rates for each rate class.
  • The Commission has directed DOD/FEA to file the requested information in an electronic format, including portable document format (PDF) documents, and to ensure that the information is searchable and bookmarked.
  • The Commission has also requested that DOD/FEA provide a written explanation of the specific grounds for its failure to completely and precisely respond to any requests for information.
  • The Commission has required DOD/FEA to make timely amendments to any prior responses if it obtains new information that indicates the response was incorrect or incomplete.
  • The Commission's order includes a list of specific questions and information requests, including explanations of how a 13-week period for calculating the average stock price is an adequate period of time to normalize short-term volatility to reflect the stock's long-term value.
  • Additionally, the Commission has requested that DOD/FEA provide support for the use of Zacks, MI, and I/B/E/S as sources for analysts' growth rate estimates, and explain why dividend growth rates were not used in the analysis.
  • The Commission's order also includes a request for further justification for the use of a Multi-Stage Growth Discounted Cash Flow (DCF) Model and a comparison of the use of Multi-Stage Growth DCF Models and Constant Growth DCF Models in determining return on equity (ROE).

Statistics:

  • The Commission's order was issued on September 10, 2025, and the requested information is due on September 23, 2025.
  • The Commission's order requires that the requested information be filed in an electronic format, including portable document format (PDF) documents.
  • The Commission has directed DOD/FEA to ensure that the information is searchable and bookmarked.
  • The Commission has also required DOD/FEA to make timely amendments to any prior responses if it obtains new information that indicates the response was incorrect or incomplete.

Sources:

  • 807 KAR 5:001
  • Kentucky Public Service Commission, Case No. 2025-00113
  • Kentucky Public Service Commission, Order (September 10, 2025)