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Public Service Commission Orders Louisville Gas and Electric Company and Kentucky Utilities Company to Provide Additional Information

Strategic Insights

— 2 min read

The Kentucky Public Service Commission has issued an order directing Louisville Gas and Electric Company and Kentucky Utilities Company to provide additional information regarding their electric tariff filings. The order, dated March 11, 2024, requires the companies to file electronic versions of specific information by March 22, 2024. The Commission staff has made three requests for information, and the companies are expected to provide detailed answers under oath.

Key Takeaways:

  • The Commission staff has requested that the companies provide updated scenarios for their resource portfolio, including an explanation of why equal weighting was assigned to Scenarios #1 and #2 when calculating the average capacity need.
  • The companies are required to provide a breakdown of the costs included in the annual economic carrying charge for new Combustion Turbine (CT) and Natural Gas Combined Cycle (NGCC) units.
  • A sensitivity analysis has been requested to consider a 50 percent cost increase to the economic carrying charge for both the CT and NGCC unit, with the aim of determining the updated avoided capacity rates and all-in avoided cost rates.
  • The Commission staff has requested confirmation on the calculation of the new capacity need, including whether it assumes a specific timeline for the retirement of Brown 3 and the use of replacement capacity.
  • The companies are required to provide information on the curtailment of Qualified Facilities (QF) generation and the factors that led to its curtailment in the avoided energy cost calculation.
  • The Commission staff has requested a calculation of the avoided energy cost using a specific methodology, including the total annual portfolio cost, the total energy generated by QF solar, and the cost differential.

Statistics:

  • The companies are required to provide the updated capacity need for their resource portfolio, including the Scenarios #1 and #2 calculations.
  • The sensitivity analysis will consider a 50 percent cost increase to the economic carrying charge, with the aim of determining the updated avoided capacity rates and all-in avoided cost rates.
  • The avoided energy cost calculation will be performed using a specific methodology, including the total annual portfolio cost, the total energy generated by QF solar, and the cost differential.

Sources:

  • Commonwealth of Kentucky, Public Service Commission. Order, Case No. 2023-00404. Dated March 11, 2024. Filed electronically.
  • Louisville Gas and Electric Company and Kentucky Utilities Company. Response to Commission Staff's Third Request for Information. Filed electronically.
  • Kentucky Public Service Commission. Order, Case No. 2020-00085. Dated July 22, 2021.
  • Kentucky Public Service Commission. Order, Case No. 2022-00402. Dated November 6, 2023.

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