Kentucky Declines Jurisdiction over AEP Transco

The Kentucky Public Service Commission (PSC) ruled that it lacks jurisdiction to approve a merchant transmission company’s plan for providing wholesale electric transmission service in Kentucky. The commission found that the new company, AEP Kentucky Transmission Company, Inc. (KY Transco), did not fit the definition of a utility under the state utility code even though the company had averred that its transmission service would be subject to both PSC and Federal Energy Regulatory Commission (FERC) jurisdiction. Dissenting Vice Chairman James W. Gardner complained that the decision continues a trend limiting the commission’s ability to have a seat at the transmission planning table. He said that prior to this decision the commission has consistently refused or has been reluctant to relinquish authority to federal utility regulators, to the market itself, or to regional transmission organizations. (Case No. 2011-00042, Ky.P.S.C.). For more analysis, subscribe to URN.