2025-00140

Key events and scheduled submissions in the East Kentucky Power Cooperative, Inc. data center power tariff proceeding (Case No. 2025-00140) are as follows:

- May 23, 2025: The Kentucky Public Service Commission issued an order initiating a proceeding to investigate the reasonableness of the proposed tariff and established the procedural schedule. EKPC and other parties were directed to enter their appearances and comply with electronic filing procedures 1, 1.

- May 28, 2025: The Kentucky Attorney General filed a motion to intervene in the proceeding 2, 3, 3.

- June 1, 2025: The effective date of EKPC’s proposed tariff was suspended for five months, through October 31, 2025 1, 1, 1.

- June 6, 2025: Deadline for requests for intervention to be filed 1.

- June 16, 2025: Deadline for EKPC to file the direct testimony of its witnesses in verified form 1.

- June 30, 2025: Initial requests for information to EKPC to be filed 1.

- July 14, 2025: EKPC to file responses to initial requests for information 1.

- July 28, 2025: All supplemental requests for information to EKPC to be filed 1.

- August 11, 2025: EKPC to file responses to supplemental requests for information 1.

- August 18, 2025: Intervenor testimony in verified prepared form to be filed 1.

- September 2, 2025: All requests for information to intervenors to be filed 1.

- September 16, 2025: Intervenors to file responses to requests for information 1.

- September 23, 2025: EKPC to file its rebuttal testimony in verified form 1.

- September 30, 2025: EKPC or any intervenor to request a hearing or request that the case be submitted for decision based on the record 1.

- October 31, 2025: Suspension of effective date for the proposed tariff ends 1, 1, 1.

Additional notes:
- Any scheduled hearings will be held at the PSC offices, and witnesses are expected to participate in person 1, 1, 1, 1.
- The Attorney General and other parties must file statements certifying they can receive electronic service and provide email addresses for service 3, 4, 3, 4.

This docket (Case No. 2025-00140) before the Kentucky Public Service Commission concerns the application by East Kentucky Power Cooperative, Inc. (EKPC) to establish a new tariff, Rate DCP (Data Center Power), which sets the terms and conditions under which EKPC and its distribution cooperatives would provide electric service to data centers. The tariff is available to qualifying customers—retail members of EKPC’s owner-member cooperatives operating eligible data centers with at least 15,000 kW peak demand and a 60% load factor. Data centers meeting these criteria are required to take service under this tariff and enter into a data center power agreement with EKPC and the relevant distribution cooperative 1, 1.

The Commission suspended the proposed tariff’s effective date from June 1, 2025, for five months, pending investigation into its reasonableness 2, 2. The Attorney General was granted full intervenor status as of May 28, 2025, with statutory authority to represent consumer interests. Nucor Steel Gallatin, the largest end-use customer in the EKPC system, was also granted intervention due to its significant interest in the proceeding. Intervention by other parties, such as the Retail Energy Supply Association, was opposed by EKPC on grounds of insufficient connection to Kentucky or the cooperative’s service area 3, 4.

The docket will proceed according to a procedural schedule, with hearings to be held as needed. All filings and communications are being handled electronically as per Commission orders 2, 2.

The docket for East Kentucky Power Cooperative, Inc.'s (EKPC) proposed data center power tariff (Rate DCP) identifies several financial and timeline risks and concerns:

Financial Risks and Concerns:
- Transmission-Related Build-Out Costs: The tariff is structured to ensure that EKPC, its cooperatives, and their retail customers do not bear the costs of transmission-related build-out for data centers. Instead, these costs are directly assigned to the qualifying data center customer, either through direct assignment or via recovery through PJM transmission service charges, to avoid cross-subsidization by other customers 1, 1.
- Allocation of Other Costs: Data center customers are responsible for their share of operations and maintenance charges for transmission and distribution facilities, as well as a proportionate allocation of EKPC’s and the cooperative’s reasonable costs (labor, professional fees, insurance, market collateral obligations, etc.) associated with providing service under the tariff 1, 1.
- Separate Accounting for Fuel and Environmental Costs: Fuel and environmental compliance costs for qualifying data center customers are tracked and charged separately from other customer classes to ensure accurate cost allocation and prevent cost-shifting 1, 1.
- Pre-Payment Deposit and Collateral: Data center customers must provide and maintain a cash deposit equal to a rolling two-month period of expected maximum monthly billings, which EKPC/cooperative can draw upon immediately for any invoiced amounts or damages. This is to mitigate payment default risk given the scale and volatility of data center loads 1.

Timeline Risks and Concerns:
- Suspension of Tariff Effective Date: The PSC found that an investigation was necessary to determine the reasonableness of the proposed tariff and suspended the effective date for five months, up to and including October 31, 2025, instead of the originally proposed June 1, 2025. This reflects concern over the adequacy of review time given the complexity and precedent-setting nature of the filing 2.
- Procedural Schedule: A detailed procedural schedule is established with multiple deadlines for intervention, information requests, testimony, and possible hearings, reflecting the complexity and need for thorough review. Delays could arise if procedural deadlines are not met or if hearings are extended 2, 2.
- Unique Contract Negotiations: The tariff provides a broad set of guidelines but anticipates that specific contracts with data centers will be individually negotiated, introducing uncertainty in timing for final agreements and risk that terms may vary or require further regulatory review 1.

Summary:
The primary financial risks are related to proper cost allocation to ensure other customers do not subsidize data center loads, while the timeline risks focus on the need for extended regulatory review, suspension of the effective date, and the complexities of negotiating individual data center contracts.

The main stakeholders in the East Kentucky Power Cooperative (EKPC) data center power tariff docket (Case No. 2025-00140) are:

East Kentucky Power Cooperative, Inc. (EKPC)
- Position: For the proposed data center power tariff (Rate DCP).
- EKPC filed and supports the tariff, emphasizing its structure to allocate all costs of serving data centers to those customers, to prevent subsidization by non-data center customers, and to attract investment in Kentucky 1, 1.

Nucor Steel Gallatin (Nucor)
- Position: Neutral to supportive, focused on ensuring its interests as the largest end-use customer are protected.
- Nucor sought and was granted intervention, citing concerns that the tariff could affect the rates it pays and expressing interest in presenting issues and facts to assist the commission in its review 2.

Attorney General of the Commonwealth of Kentucky
- Position: Statutory intervenor, generally focused on protecting consumer interests. No explicit support or opposition to the proposal is stated in the excerpts.
- The Attorney General intervened to represent consumers’ interests, as provided by statute 3, 4, 3.

Retail Energy Supply Association (RESA)
- Position: Opposes the current process or approach, seeking intervention to present broader market perspectives.
- EKPC opposes RESA’s intervention, arguing RESA lacks direct interest or standing in Kentucky and that its participation could unduly complicate proceedings. RESA’s expertise is described as outside the scope of Kentucky law and regulation regarding electric choice, which does not apply here 5, 5, 5.

Summary Table:

- EKPC: Proponent of the new data center tariff.
- Nucor: Intervenor, monitoring impact on its rates; not explicitly for or against the tariff.
- Attorney General: Statutory intervenor for consumer interests; neutral in excerpts.
- RESA: Sought intervention to offer broader market perspective; opposed by EKPC and not granted full intervention due to lack of standing.

No other stakeholders are explicitly mentioned in the provided excerpts.

The docket identifies the growth area of attracting and facilitating large-scale investments in high technology facilities, specifically data centers, in Kentucky. The proposed "Rate DCP" (Data Center Power tariff) is described as "the first significant step towards accomplishing that goal," with the potential for "billions of dollars of capital in new, high technology facilities" to be invested in the state 1.

Key considerations related to this growth area include:

- Eligibility and Applicability: The tariff is available to any retail member of EKPC’s owner-member distribution cooperatives who owns or operates (or proposes to own or operate) an eligible data center. The requirements for eligibility include a minimum expected or actual peak real-time energy demand of 15,000 kW and a minimum monthly load factor of 60 percent 1.

- Exclusive Service: Qualifying customers who meet these criteria after the effective date must take service under this tariff and cannot take electric service for an eligible data center under any other general service tariff within EKPC’s service territories 1.

- Economic Impact: The construction and operation of new resources (like data centers) will "significantly and directly affect the demand and energy charges" paid by other large customers, such as Nucor, the largest end-use electrical customer in the Owen Electric service territory. This makes rate impacts and resource allocation a key consideration in the growth of data center facilities 2.

- Consumer Protection and Regulatory Oversight: The Kentucky Attorney General’s intervention highlights the need to represent consumer interests, indicating that growth in this sector must also consider ratepayer protections and fair allocation of costs and benefits 3.

- Tariff Details and Financial Requirements: The tariff includes special provisions like weekly billing, separate tracking of fuel and environmental costs, and significant pre-payment deposit requirements for qualifying customers, reflecting the large financial and operational impact of serving data centers 1.

In summary, the docket centers on incentivizing and managing the growth of large data centers in Kentucky, with considerations spanning eligibility, economic impact on existing customers, exclusive service requirements, regulatory oversight, and specific financial/operational provisions tailored to these high-demand facilities.