Kentucky Public Service Commission

Order Entered: (1) KU's motion to correct the November 14, 2013, Order is granted. (2) The first sentence of Ordering paragraph 4 on page 8 is amended to read as follows: KU shall roll $45,820,651 of incremental environmental surcharge amounts found to be just and reasonable herein into its existing rates, for a total base rate environmental component of $50,966,954.

Order Entered: 1. KU's request to submit this case for a decision on the existing evidence of record without a hearing is granted. 2. The environmental surcharge amounts determined by KU for the review period ending April 30, 2013 are just and reasonable. 3. In the second full billing month following the month in which the Commission issues its Final Order in this proceeding, KU shall decrease its jurisdictional environmental revenue requirement by $444,933 for one month. 4. KU shall roll $45,821,651 of incremental environmental surcharge amounts found to be just and reasonable herein into its existing base rates, for a total base rate environmental component of $50,966,954. The roll-in shall be allocated to the customer classes as described in the Settlement Agreement approved in Case No. 2011-00161 and in Case No. 2011-00231. 5. KU shall use an overall rate of return on capital of 7.07 percent, a tax gross-up factor of 0.64, a return-on-equity rate of 10.25 percent and an overall grossed up return of 10.10 percent in all monthly environmental surcharge filings subsequent to the date of this Order. 6. Within 20 days of the date of this Order, KU shall file with the Commission revised tariffs reflecting the changes to its base rates as a result of the roll-in of environmental surcharge amounts described herein; the same type of supporting documentation filed in Case No. 2011- 00231; other proposed language changes described herein; and red-lined version of its tariffs.

20130926_PSC_IC Memo.pdf

Kentucky Utilities Company request to take the case under submission for decision.

Robert M. Conroy Kentucky Utilities Company

Letter advising the KPSC that KIUC will not file testimony.

Michael L. Kurtz KIUC

Response of Kentucky Utilities Company to the Commission Staff’s Questions Raised at the August 30, 2013 Technical Conference

Robert M. Conroy Kentucky Utilitites Company

Order Entered: (1) The informal conference in this matter originally scheduled for August 21, 2013 is rescheduled to Friday, August 30, 2013, at 10:30 a.m. Eastern Daylight Time, in Conference Room 1 of the Commission's offices at 211 Sower Boulevard, Frankfort, Kentucky. (2) The July 12, 2013 Order is amended to provide that all papers in this matter shall be filed through the Commission's E-filing System at http://psc.kv.qov. and the filing party shall file one paper original with the Commission in accordance with 807 KAR 5:001, Section 8(3). (3) All other provisions of the Commission's July 12, 2013 Order and procedural schedule shall remain in full force and effect.

Order Entered: 1. The petition of KIUC to intervene is granted. 2. After the date of this Order KIUC shall be entitled to the full rights of a party and shall be served with electronic notice of all Commission Orders and with filed testimony, exhibits, pleadings, correspondence, and all other documents submitted by any party to this proceeding. 3. Within seven days of entry of this Order, KIUC shall file a written statement as to whether it, or its agent, is capable of receiving electronic transmissions, and whether it waives its right to service of Commission Orders by United States mail in return for electronic notification of the issuance of such Orders.

KIUCs Petition to Intervene

Michael L. Kurtz KIUC

Direct Testimony of Robert M. Conroy and the Response of Kentucky Utilities Company to the First Request for Information in Appendix B of the Commission’s Order dated July 12, 2013

Robert M. Conroy Kentucky Utilities Company

Letter to Executive Director requesting rescheduling of technical conference

William Duncan Crosby III Kentucky Utilities Company

Order Entered: Unless otherwise ordered by the Commission, the procedures set forth in 807 KAR 5:001, Section 8, shall be followed when filing papers in this proceeding. 2. The procedural schedule set forth in Appendix A, attached hereto and incorporated herein, shall be followed in this proceeding.3. KU shall appear at the Commission’s offices on the date set forth in Appendix A to submit itself to examination on the application of its environmental surcharge as billed to consumers from May 1, 2011 through April 30, 2013. At the public hearing there shall be no opening statements or summaries of testimony. 4. KU shall, by the date set forth in Appendix A, file its prepared direct testimony in support of the reasonableness of the application of its environmental surcharge mechanism during the period under review.