Kentucky Utilities Company

NOTICE
Notice is hereby given that on December 6, 2017
Kentucky Utilities Company
("KU") have filed an application with the Public Service Commission, Frankfort, Kentucky for approval of revisions in its Demand-Side Management and Energy-Efficiency ("DSM-EE") program portfolio, as shown in KU's Adjustment Clause Demand-Side Management Cost Recovery Mechanism ("DSM) tariff and the resulting changes in its DSM Cost Recovery Component ("DSMRC") charges. In its application, KU will notify the Commission that the revised DSM tariff sheets are proposed to become effective on and after January 5, 2018; however, because KU anticipates the Commission will suspend the proposed changes in the DSM tariff to conduct an investigation of the proposed changes, KU will ask the Commission to approve the proposed changes in its DSM-EE program portfolio and resulting charges under the DSM tariff to be effective on January 1, 2019.
The proposed changes to the DSM-EE program portfolio, if approved, will result in changes to the DSMRC calculated under the DSM tariff for all affected electric rate classes as follows:
KU proposes also to make available DSM-EE program to, and to apply DSM charges to, industrial customers. KU is also revising its definition of "industrial" for the purposes of DSM to include only those customers engaged in activities primarily using electricity in a process or processes that involve either the extraction of raw materials from the earth or a change of raw or unfinished materials into another form or product. KU is also proposing an opt-out for industrial customers meters serving energy-intensive loads, defined as any meter served under Rate TODP, RTS, or FLS. To be eligible to opt out, an industrial customer must state it has implemented cost-effective energy-efficiency measures not subsidized by other rate classes for the loads served by the meters to be opted out. Customers choosing to opt out eligible meters must submit an opt-out form to KU; properly completed and submitted opt-out forms will be processed and opt-outs implemented by the second full billing cycle following form submission. Opt outs will be effective indefinitely, though a customer may seek to opt back into DSM charges and DSM-EE programs for opted-out meters as soon as one year after opting out. Any opted-in meter or meter that serves load that has participated in a DSM-EE program may not opt out for at least three years after most recently opting in or participating in a DSM-EE program, whichever is later.
In addition, KU proposes to include DSM in the Adjustment Clauses section of Rate FLS because such customers will now be able to participate in DSM-EE programs and be subject to DSM charges unless meters served under Rate FLS are opted out.
The estimated amount of the annual change and the average monthly bill to which the proposed DSMRC charges will apply for each electric customer class is as follows:
* KU formulated the DSMRC Charges applicable to Rates TODP, RTS, and FLS assuming that industrial customers taking service under those rates will choose to opt out eligible meters. Therefore, KU does not anticipate such customers will actually incur the costs shown; however, the table above reflects the impacts to such customers if they elect not to opt out, though the DSMRC Charges, and particularly the DSM Billing Adjustment, may change to reflect the additional revenues from such customers load paying DSMRC Charges.
Complete copies of the proposed tariffs containing text changes and proposed rates may be obtained by contacting Kentucky Utilities Company at 220 West Main Street, Louisville, Kentucky,
1-800-981-0600, or visiting Kentucky Utilities Company's website at www.lge-ku.com.
Notice is further given that a person may examine this application at the offices of Kentucky Utilities Company, 100 Quality Street, Lexington, Kentucky, and may also be examined at Kentucky Utilities Company's website at
www.lge-ku.com. A person may also examine this application at the Public Service Commission's offices located at 211 Sower Boulevard, Frankfort, Kentucky, Monday through Friday, 8:00 a.m. to 4:30 p.m., or through the commission's Web site at
http://psc.ky.gov.
Comments regarding the application may be submitted to the Public Service Commission, by mail to Public Service Commission, Post Office Box 615, Frankfort, Kentucky 40602, or by sending an email to the Commission's Public Information Officer at
psc.info@ky.gov. All comments should reference Case No. 2017-00441.
The rates contained in this notice are the rates proposed by Kentucky Utilities Company, but the Public Service Commission may order rates to be charged that differ from the proposed rates contained in this notice. A person may submit a timely written request for intervention to the Public Service Commission, Post Office Box 615, Frankfort, Kentucky 40602, establishing the grounds for the request including the status and interest of the party. If the commission does not receive a written request for intervention within thirty (30) days of initial publication or mailing of the notice, the commission may take final action on the application.
Kentucky Utilities Company c/o LG&E and KU Energy LLC 220 West Main Street P.O. Box 32010 Louisville, Kentucky 40232 Telephone: 1-800-981-0600
Public Service Commission 211 Sower Boulevard P.O. Box 615 Frankfort, Kentucky 40601 Telephone:
502-564-3940

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Kentucky Utilities Company

220 West Main Street P.O. Box 32010

Louisville Kentucky, 40232

1-800-981-0600

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