Kentucky

Legislative activities

In 2007, the Kentucky Legislature passed the Incentive for Energy Independence Act, part of which requires the Kentucky Public Service Commission to consider “demand-management”. The provision states: “Eliminating impediments to the consideration and adoption by utilities of cost-effective demand-management strategies for addressing future demand prior to Commission consideration of any proposal for increasing generating capacity.” (HB 1) [1]

Kentucky’s Legislative also dealt with renewable energy deployment and permitting, such as in 1982 allowing solar easements to be obtained for the purpose of ensuring access to direct sunlight. The Legislature also enacted legislation in 2004, and amended it in 2008, for net metering of certain renewable and expanded the capacity limits. (SB 83) [3, 4]

Regulatory activities

The Kentucky Public Service Commission had addressed rates dealing specifically with distributed generators by 1999. By 2002, the Commission had approved real-time pricing for industrials, followed by time-of-use rates for business and residential customers by 2009. Demand-based rates were being approved for use by 2006 for several types of demand-side management service rates. [5, 6, 7]

“In December 2006, the Kentucky Public Service Commission decided not to adopt PURPA Standard 14 (“Time-Based Metering and Communications”) as enacted in EPACT 2005. The Commission’s Order declining adoption, however, did include support for TOU rates and critical-peak pricing as well as encouragement for utilities to consider these pricing options. In the same Order, the Commission directed several utilities to develop pilot real-time-pricing programs for their C&I customers and/or finalize proposed residential real-time-pricing pilot programs.” [1]

Distributed generators include qualifying cogeneration, small power production facilities, and net metering generators where prices are negotiated, energy netted out, or capacity sold to the company.

Time-of-Use or Time-of-Day rates just break the cost for electricity or demand into either on-peak or off-peak pricing.

The real-time pricing is either a portion of the load based wholesale real-time PJM AEP Zone energy charges available through PJM, or prices provided to the customer by 3:00 PM the day before power flows.

Demand-side management includes peak load management and curtailable load rates. Peak load management allows the company to reduce customer demand during peak load periods. Curtailable service allows the company to curtail customer demand upon request, during emergency situations, or when price limits are reached within the applicable tariff levels.

Utilities and Rate Schedules

Duke Energy
- Duke Energy Rates

Kentucky Power
- Kentucky Power Rates

Kentucky Utilities Company
- Kentucky Utilities Company Rates

See the National Rural Electric Cooperative Association (NRECA) for information on consumer-owned Cooperatives: http://www.nreca.org/members/MemberDirectory/Pages/default.aspx

State-Level Incentives

Kentucky offers corporate and personal renewable energy tax credits, along with sales tax exemption for large-scale renewable energy projects.

More information can be found in the Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=KY

Additional Resources

State Energy Office:
- Kentucky Department for Energy Development & Independence

State Authority Dealing with Energy Regulation:
- Kentucky Public Service Commission
- Docket Search: http://psc.ky.gov/docket_web_reports/docket_reports.aspx

Kentucky Revised Statutes

Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=KY

References

[1] Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Officials, Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy, Fall 2008. URL: http://www.oe.energy.gov/DocumentsandMedia/NCEP_Demand_Response_1208.pdf
[2] Database of State Incentives for Renewables & Efficiency, Kentucky Interconnection Standards, 02/04/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=KY12R&re=1&ee=1
[3] Database of State Incentives for Renewables & Efficiency, Kentucky – Net metering, 02/04/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=KY07R&re=1&ee=1
[4] Database of State Incentives for Renewables & Efficiency, Kentucky Solar Easements, 06/10/2009. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=KY01R&re=1&ee=1
[5] Duke Energy, Electric Tariff Duke Energy Kentucky. URL: http://www.duke-energy.com/rates/kentucky/electric.asp
[6] Kentucky Power Company, Schedule of Tariffs, Terms and Conditions of Service Governing Sale of Electricity. URL: https://www.kentuckypower.com/global/utilities/lib/docs/ratesandtariffs/kentucky/KYTAR%2008-10-2011.pdf
[7] Kentucky Utilities Company, Rates Terms and Conditions for Furnishing Electric Service. URL: http://www.lge-ku.com/rsc/ku/kuelecrates.pdf