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The Kentucky Public Service Commission (PSC) says it will review a wind energy proposal from Louisville Gas & Electric Co. (LG&E) and Kentucky Utilities Co. (KU) but says the utilities will have to ask for a rate adjustment rather than a surcharge if they want to recover any wind energy costs.

The PSC denied a request by LG&E and KU to bypass the exhaustive rate adjustment process in a favor of a surcharge adjustment. LG&E estimated that the wind power surcharge would add $0.71 to the average residential customer's bill, and KU estimated a monthly surcharge of $0.92.

"Today's decision is simply about ensuring that the rate impacts of this proposal are considered appropriately," says the PSC's chairman David Armstrong. "It is purely about procedure and makes no judgment about the wind energy proposal itself."

The utilities have proposed buying electricity from two Illinois wind farms with a combined capacity of 110 MW. The utilities say buying energy from wind would meet any possible requirement they may have to buy some of their energy from renewable sources.

SOURCE: Kentucky Public Service Commission

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