Just got word that Louisville Gas & Electric is pushing through an emergency rate adjustment effective October 1st. They're calling it a "fuel cost recovery mechanism," but the numbers don't add up. Schedule GS customers are seeing increases of 8-12%, supposedly due to coal transportation costs. Problem is, their fuel mix has been shifting toward natural gas for two years. Anyone else seeing utilities use outdated justifications for rate increases?
LG&E Rate Case Update - They're Not Playing Fair
Jack, we're seeing similar games with FirstEnergy here in Cleveland. They filed a "distribution modernization" surcharge last month, but half the infrastructure they're upgrading was already included in last year's rate base. The PSC doesn't seem to be catching these double-counting issues. It's like they're betting that nobody reads the fine print. Have you considered filing formal comments on LG&E's case?
Frank's right about the double-counting. We're seeing it here in Missouri with Ameren too. The trick is getting access to their cost accounting data before the PSC hearing. Most states have discovery procedures that allow interested parties to request detailed breakdowns. It's time-consuming, but it's the only way to prove they're charging customers twice for the same investments. Jack, do you have clients willing to fund a formal intervention?
Elmer, I've got three large commercial customers who are interested, but they want assurance that intervention won't put targets on their backs. LG&E has a history of being vindictive toward customers who challenge them publicly. Has anyone dealt with utility retaliation issues? I don't want to expose my clients to harassment, but this rate case is so flawed it needs to be challenged.