Public Service Commission Orders Louisville Gas and Electric to Provide Customer Notice for Tariff Revisions

Strategic Insights -

The Kentucky Public Service Commission has issued an order requiring Louisville Gas and Electric (LG&E) to provide customer notice for its proposed revisions to the Local Gas Delivery Service tariff. The tariff revisions, which have been suspended until September 30, 2024, include changes to the definition of local gas, requirements for producers to have their own gas quality testing equipment, and updates to gas quality specifications.

LG&E had requested a deviation from the notice requirements of 807 KAR 5:011, Section 8, citing the limited number of customers impacted by the proposed tariff changes. However, the Commission found that customer notice is required and granted a deviation from the notice requirements due to good cause. LG&E has estimated the cost of mailing notice to be approximately $20,000, and the cost of publication in newspapers to be $100,000.

Key Takeaways:

  • LG&E proposed revisions to its Local Gas Delivery Service tariff, including changes to the definition of local gas and requirements for producers to have their own gas quality testing equipment.
  • The proposed tariff revisions have been suspended until September 30, 2024, to allow for further investigation into their reasonableness.
  • LG&E estimated the cost of mailing notice to all customers to be approximately $20,000, and the cost of publication in newspapers to be $100,000.
  • The Commission found that customer notice is required due to the changes proposed in the tariff revisions, but granted a deviation from the notice requirements due to good cause.
  • LG&E has demonstrated an effort to notify prospective customers and provided them with the appropriate information.
  • LG&E's Senior Corporate Attorney, Sara Judd, and Managing Senior Counsel, Allyson K Sturgeon, were served by email in this matter.

Statistics:

  • LG&E estimated the cost of mailing notice to all customers to be $20,000.
  • The estimated cost of publication in newspapers was $100,000.
  • The proposed tariff revisions have been suspended until September 30, 2024.

Sources:

  • Letter to Ms. Linda Bridwell (filed Mar. 29, 2024)
  • 807 KAR 5:011, Section 8
  • Order on LG&E's Tariff Filing (Case No. 2024-00125)
  • Public Service Commission Decision (Case No. 2024-00125)