The Federal Energy Regulatory Commission (FERC) has denied a request by Kentucky Utilities Co. (KU) to charge market-based rates for bulk-power sales. In a related action, the FERC called for a public hearing on KU's accompanying transmission tariff, which would establish point-to-point rather than network service. KU, the principal subsidiary of KU Energy Corp., argued that the FERC has granted market-based rates in other cases without the filing of a network services tariff.
In its order (ER94-1698-000), the FERC said KU's analysis of its generation market power was "inadequate" and failed to demonstrate that KU lacks generation dominance. KU argued that its proposed transmission tariff, which would provide firm and nonfirm point-to-point service, included "a form of network service," but the FERC was skeptical that the proposal would meet its comparability standards.
The proposed transmission tariff was accepted with a December 1 effective date, at KU's request, but has now been suspended, subject to refund, and set for hearing before an administrative law judge. Several customers objected to KU's plan to delay the filing of a network services tariff. They asked that KU's market-based sales rate request be delayed until the utility's tariff is upgraded to provide comparable transmission service. (em LGt
Lori Burkhart is an associate legal editor and Lynn Garner is senior writer of PUBLIC UTILITIES FORTNIGHTLY.
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