commonwealth of kentucky before the public … cases/2007-00477/ky...item no. 12 page 1 of 2...

In the Matter of:

COMMONWEALTH OF KENTUCKY

BEFORE THE PUBLIC SERVICE COMMISSION

AN INVESTIGATION OF THE ) ENERGY AND REGULATORY ISSUES 1

2007 ENERGY ACT ) IN SECTION 50 OF KENTUCKY’S 2007 1 CASE NO. 2007-00477

* * * * * * * *

PETITION FOR CONFIDENTIAL TREATMENT

Kentucky Power Company (“Kentucky Power”) moves the Commission pursuant

to 807 KAR 5:001, Section 7, for an Order granting confidential treatment to a portion of

Kentucky Power’s Responses to Data Request Nos. 17 and 45.

Pursuant to 807 KAR 5:001, an original of those parts of the responses for which

confidential treatment is sought is filed as part of Kentucky Power’s original filing in

response to this data request. In addition, six redacted copies of the subject Response

are filed with Petition.

A. The Requests And The Statutory Standard.

Data Request No. 17 directs Kentucky Power to:

Provide the current estimates of KPCo avoided energy and demand costs, as relied upon in cost-benefit analyses. Provide an estimate of such costs as of 2010; 2015; 2020 (or similar periods if more readily available), consistent with IRP studies. Include summary level analysis sufficient to identify quantification of key variables included in estimates.

Data Request No. 45 provides in part:

To the extent possible, disaggregate cost estimates into sub-categories such as capital costs; fixed and variable operations and maintenance costs; fuel costs; etc. Provide expectations of cost of capital or discount rates assumed for new projects.

Kentucky Power does not object to providing to the Commission and its

consultant those portions of the information sought in Data Request Nos. 17 and 45 for

which confidential treatment is sought. As a result of the competitive nature of the

markets, however, the public disclosure of such information will place Kentucky Power

at a competitive disadvantage. As a result, Kentucky Power is seeking confidential

treatment for such information.

KRS 61.878(1)(~)(1) excludes from the Open Records Act:

"Records confidentially disclosed to an agency, generally recognized as confidential or proprietary, which if openly disclosed would present an unfair commercial advantage to competitors of the entity that disclosed the records, and which are compiled and maintained . . . in conjunction with the regulation of commercial enterprise . . .'I

This exception applies to those portions of Kentucky Power's response to Data Request

Nos. 17 and 45 for which Confidential treatment is sought.

B. Application of the Standard to the Information to Be Protected.

1. Avoided Capacity and Energy Costs.

The advent of energy markets operated by Independent System Operators (EO)

or Regional Transmission Organizations (RTO) such as PJM over large transmission

areas has driven traditional Investor Owned Utilities (IOU's) to compete on a regional

basis with other IOU's, Independent Power Producers (IPPs) and financial market

participants such as investment banks and hedge funds, in the wholesale market. The

increase in competition combined with increased fuel cost volatility is bringing about an

intense focus not only on cost minimization techniques, but also fuel procurement

strategy, power purchase agreements, portfolio maximization strategies, and long-term

2

generation resource planning. Competitive markets such as PJM reward generation

innovation whether it be in the form of reduced heat rates, reduced Operations and

Maintenance expenditures or increased operational flexibility. Failure to innovate can

result in reduced opportunities to minimize cost and maximize value enhancing

opportunities as PJM is managing the transmission system, and to a large extent

generation assets, to achieve the lowest possible total production costs across the

system footprint while maintaining reliability.

Specifically, the growth of competitive markets such as PJM has placed a

premium on generating unit data. AEP may purchase and sell capacity on behalf of

Kentucky Power in the PJM market. Public disclosure of forecasted capacity prices

could adversely impact ratepayers and shareholders of AEP by providing data that may

allow a competitive advantage to be obtained by a direct competitor of AEP, affecting

Kentucky Power’s ability to minimize costs for its ratepayers. Implicit in capacity costs

are capacity factors, commodity price forecasts, and other market intelligence that is

typically confidential.

Information concerning avoided capacity and energy costs is treated as

confidential and proprietary by AEP and Kentucky Power. Dissemination of such

information is restricted by Kentucky Power and AEP each takes all reasonable

measures to prevent its disclosure to the public as well as to persons within the

respective companies who do not have a need for the information.

3

2. Disaggregated Cost and Other Estimates Regarding New Generation Technologies.

In response to Data Request No. 45, Kentucky Power is providing disaggregated

estimates of capability, installed costs, transmission costs, full load heat rate, fuel costs,

fixed operating and maintenance costs, emission rates, capability factors and overall

availabilities for new generation technologies. This information is competitively

sensitive and a trade secret because competitors may derive economic value by using

this projected resource cost and emissions informatian. The disclosure of the projected

resource cost and emissions forecasts would also be of economic value to third parties

and adversely affect Kentucky Power and its ratepayers because it would permit

competitors to better determine how to price their services and products and provide

suppliers with insight regarding the pricing of products and services to meet Kentucky

Power’s expectations.

All of the material in Kentucky Power’s response to Data Request No. 45 for

which confidential treatment is sought is treated as confidential and proprietary by AEP

and Kentucky Power. Dissemination of the information for which confidential treatment

is being requested is restricted by Kentucky Power and AEP and each takes all

reasonable measures to prevent its disclosure to the public as well as to persons within

the respective companies who do not have a need for the information.

Wherefore, Kentucky Power Company respectfully requests the Commission to

enter an Order:

1. According confidential status to and withholding from pubic inspection the

indicated parts of Kentucky Power’s responses to Data Request No. I 7 and 45; and

4

2. Granting Kentucky Power all further relief to which it may be entitled.

Respectfully submitted,

STITES & HARBISON PLLC 421 West Main Street P. 0. Box 634 Frankfort, Kentucky 40602-0634 Telephone: (502) 223-3477

COUNSEL FOR KENTUCKY POWER COMPANY

5

CERTIFICATE OF SERVICE

I hereby certify that a true and accurate copy of Kentucky Power Company's Responses were served via United States Postal Service, First Class Mail, postage prepaid, upon:

Lonnie E. Bellar Vice President - State Regulation Kentucky Utilities Company Louisville Gas and Electric Company 220 West Main Street P.Q. Box 3201 0 Louisville, Kentucky 40202

James M. Miller Tyson A. Kamuf Sullivan, Mountjoy, Stainback & Miller, PSC I00 St. Ann Street P.O. Box 727 Owensboro, Kentucky 42302-0727

John J. Finnegan, Jr. Senior Counsel Duke Energy Kentucky, Inc. 139 East Fourth Street Cincinnati, Ohio 45202

Dennis G. Howard, I I Lawrence D. Cook Paul D. Adams Office of the Kentucky Attorney General 1024 Capital Center Drive, Suite 200 Frankfort, Kentucky 40602-8204

Stephen A. Sanders Appalachian Citizens Law Center, Inc. 52 Broadway, Suite B Whitesburg, Kentucky 41858

this the 14'h day of January, 2008.

Lisa Kilkelly Legal Aid Society 416 West Muhammad Ali Boulevard Suite 300 Louisville, Kentucky 40202

Charles A. Lile East Kentucky Power Cooperative 4775 Lexington Road P.O. Box 707 Winchester, Kentucky 40392-0707

Michael L. Kurtz Boehm, Kurtz R Lowry 1510 CBLD Building 36 East Seventh Street Cincinnati, Ohio 45202

Over la nd Cons u It in g Building 84, Suite 420 10801 Mastin Overland Park, Kansas 6621 0

Kendrick R. Riggs Stoll Keenon Ogden, PLLC 500 West Jefferson, Suite 2000 Louisville, Kentucky 40202-2874

Mark R'. Overstreet KE057.KE197:16443.1 .FRANKFORT

6

JAN II 5 2008 PUBLIC SERVICE

COMM ISSlON COMMONWEALTH OF TiXNTUCKY

BEFORE THE

PUBLIC SERVICE COMMISSION OF KENTUCKY

IN THE MATTER OF

AN INVESTIGATION OF THE ENERGY AND ) REGULATORY ISSUES IN SECTION 50 OF ) ADMINISTRATIVE KENTUCKY’S 2007 ENERGY ACT ) CASE NO. 2007-00477

KENTUCKY POWER COMPANY

RESPONSE TO COMMISSION STAFF’S SECOND SET OF DATA REQUESTS

January 14,2008

KF’SC Administrative Case No. 2007-00477 An Investigation of the Energy and Regulatory Issues in Section 50 of KY’s 2007 Energy Act

Commission Staffs Second Set of Data Request Order Dated January 3,2008

Item No. 12 Page 1 of 2

Kentucky Power Company

REQUEST

Referring to Discovery Response, Item 1, page 14 of 15, the schedule shows capital spending for 2007-20 12. Specifically, under the heading of “environmental” in the years 20 1 1 and 20 12, expenditures of $82 million and $22 1 million, respectively, are indicated. Please describe what projects are anticipated in these expenditures. Provide total cost estimates for these projects, if expenditures extend beyond 20 12.

RESPONSE

The environmental capital expenditures are detailed on Page 2 of this response. The majority of the capital expenditures are related to the Big Sandy tJnit 2 FGD and associated equipment. There is an additional $1 1 9M of capital expenditures forecasted for 201 3 related to this work.

WITNESS: Errol K Wagner and Timothy C Mosher

KPSC Administrative Case No. 2007-00477 An Investigation of the Energy and Regulatory Issues in Section 50 of KY's 2007 Energy Act

Commission Staffs Second Set of Data Requests Order Dated January 3,2008


Kentucky Power Campany

REQUEST

Discovery response, Item 3, Attachment A, contains an analysis of potential use of biomass with coal at Big Sandy Units 1 and 2. What is the status of this potential project? What specific conditions precedent would trigger this conversion, if not already planned?

RESPONSE

Discovery response, Item 3, Attachment A (the high-level economic screening). No specific plant evaluation (i.e., physical plant evaluation of boiler modifications, materials handling considerations, detailed biomass resource assessment, etc.) has been made for the Big Sandy Plant. The economic screen is used as one tool (but not the only tool) in evaluating which facilities could be candidates for biomass co-firing.

Specific conditions that could trigger such biomass use and Qat would be evaluated include, but are not limited to, boiler conditions, biomass fuel availability, environmental permitting requirements, materials handling needs, emissions impacts, implementation of a Renewable Porfolio Standard, C02 legislation, cost recovery options, renewable credit and tax credit status, and marginal costs.


KPSC Administrative Case No. 2007-00477 An Investigation of the Energy and Regulatory Issues in Section 50 of Ky‘s 2007 Energy Act

Commission Staff ‘s Second Set of Data Requests Order Dated January 3,2008



REQUEST

Discovery response, Item 3, Attachment C, contains an analysis of potential landfill sites for electric generation. What is the current status of the Cooksey Brothers site in Ashland? Wiat specific condition(s) precedent would trigger this conversion, if not already planned?

RESPONSE

According to USEPA’s Landfill Methane Outreach Program (LMOP) on January 4,2008, the Cooksey Brothers Disposal Company, Inc. Landfill is a “candidate” site. USEPA “L,MOP defrnes a candidate landfill as one that is accepting waste or has been closed for five years or less and has at least one million tons of waste and does not have an operational or under construction project; or is designated based on actual interest or planning.”

Specific conditions that would be evaluated include, but are not limited to, environmeiital permitting requirements, status of the landfill (closed in 2004 per the LMOP database), existence of a metliane collection system, status of any methane flaring operation, implementation of a Renewable Portfolio Standard, C02 legislation, cost recovery options, renewable credit and tax credit status, marginal costs for electricity production vs. flaring methane for C02 credits only, as well as methane production evaluation based on LMOP data (as methane production greatly decreases when landfills are closed and capped).




Item No. 15 Page 1 o$b


REQUEST

Discovery response, Item 4, provides information about current DSM programs.

. Please provide a summary schedule providing an estimate of the peak demand (MW) reduction a i d o r total energy savings (MWh per year) associated with each of these programs.

. Provide the percent of participation currently achieved, and indicate the expected or target participation (penetration) level.

. Provide a summary of the computation and results of the tests currently used by AEP for analyzing the economics for all existing and currently proposed programs. Are there energy and capacity benefits attributed to DSM programs in the test(s)? Are there any avoided capacity margin and transmission loss savings attributed to the program benefits?

Please explain how these estimates of demand reduction were developed.

. What measurements and verification protocols does the utility employ for operating these programs?

RESPONSE

Bullet No. 1 - Please see Page 4 of this response for the summary schedule of peak demand (MW) reduction and total energy savings (MWh) by year and program.

Bullet No. 2 - Please see Page 5 of this response for the percentage of participation and estimated Year 2008 participants.


Commission Staff's Second Set of Data Requests Order Dated January 3,2008

Item No. 15 Page 2 o d ~

Bullet No. 3 - Please see Page 6 of this response for a summary of the results of the evaluation used by AEP for analyzing the existing proposed programs.

a) AEP uses four major tests to identify the cost and benefit components and cost-effectiveness calculation procedures that were developed from the California Standard Practice Manual - Economic Analysis of Demand-Side Programs and Projects. The four tests are the following: the Total Resource Cost Test, the Ratepayer Impact Measure Test, the TJtility Cost Test (or Program A d d s t r a t o r Test), and the Participant Test. Each one of these tests is the result of comparing the program benefits with the program costs using a benefit-cost ratio of the DSM program.

The Total Resource Cost (TRC) Test measures the net costs of a DSM program as a resource option based on the total costs of the program, including both the participants' and the utility's costs. The benefits of the TRC Test are the avoided participant costs, avoided supply costs and the reduction in the transmission, distribution, generation and capacity costs valued at marginal costs, which are compared to both the utility program costs and the participant's costs, along with tlie increase in generation and other capital costs.

The Ratepayer Impact Measure, measures the effects to the customer bills or rates due to changes in the utility revenues and operating costs caused by the DSM program. The benefits are the savings from avoided supply costs and revenue gain, which are compared to the utility program costs, incentives paid to the participants, decreased revenues and increased supply costs.

The Utility Cost or also called the Program Administrator Cost, measures the net costs of a DSM program as a resource option based on the costs of the program, excluding any costs incurred by the participant. The benefits are the same as the TRC test, excluding avoided participant costs, which are cornpared to the similar costs of the TRC test, excluding the participant costs, but including incentives paid to the participant.

The Participant Test measures quantifiable benefits and costs to the customer due to participation in tlie DSM program. The benefits include the reduction on the customer's utility bill; any incentive paid to the customer and avoided participant costs, which are compared to the participant's costs incurred from participating in the DSM program.

There are energy and capacity benefits attributed to DSM programs in the test(s). There are capacity margin and transmission loss savings attributed to the program benefits.

Bullet No. 4 - In the initial filing, Case No. 95-427 dated September 27, 1995; the demand (lw) savings were estimated. A s m a r y of the estimated demand (kw) savings can be found on

KPSC Administrative Case No. 2007-00477 An Investigation of the Energy and ReguIatory Issues in Section 50 of KY's 2007 Energy Act


Item No. 15 Page 3 o#h

Page 16 of the Executive Sumrnary of the initial filing. Additional information regarding energy and demand reductions are also listed in Sections 111, IV, V and Exhibit "E" of the initial filing. After the initial filing, the savings for each of the programs were based on evaluation results. The initial filing and evaluations are on file at the Commission.

Bullet No. 5 - The measurements and verification protocols used by KPCo are pursuant to KRS 278.285 Demand-side management plans; (l), (c) which states "...utility to encourage iiiiplementation of cost-effective demand-side management programs;" KPCo evaluates its Demand-side Management (DSM) programs using the Total Resource Cost (TRC) test. Each of KPCo's residential DSM programs currently have a cost effectiveness ratio of one or greater. These programs are evaluated every three years to insure the programs remain cost-effective. These evaluations are on file at the Commission.

WITNESS: Errol K Wagner and Timothy C. Mosher

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Administrative Case No. 2007-00477 item No. 75 Bullet No. 2 Page 5 o f 6

Kentucky Power Company Percentage of Participation

Program Description:

Targeted Energy Efficiency

Mobile Home Heat Pump

Mobile Home New Construction

Modified Energy Fitness

Total

Total Residential Customers

Percentage of Participation

Total Number of 2008 Participants Estimated

as of Number

2007 Participants December 3 1 , of

3,094 21 0

1,752 100

1,621 150

3,989 1000

10,456 1,460

144,208

7.25%

Administrative Case No. 2007-00477 Item No. 15 Bullet No. 3 Page 6 of 6

Kentucky Power Company DSM Programs

2005 Benefit Cost Ratios

TEE Program

Total Resource Cost

Ratepayer Impact Measure

Participant

Utility Cost

Mobile Home Heat Pump

Total Resource Cost


Participant

Utility Cost

Mobile Home New Construction

Total Resource Cost


Participant

Utility Cost

Modified Energy Fitness Program

Total Resource Cost


Participant

Utility Cost

2.05

0.62

nla

2.05

5.53

0.75

3.49

4.42

4.14

0.78

2.37

6.60

2.92

0.80

nla

3.40

KPSC Administrative Case No. 2007-00477 An Investigation of the Energy and Regulatory Issues in Section 50 of KY‘s 2007 Energy Act

Commission Staff’s Second Set of Data Requests Order Dated January 3, ZOOS



REQUEST

In considering a potential DSM program or renewable energy project, is the avoided cost of capacity included in the cost-benefit analysis relied upon? If yes, please explain the methodology and mechanics for computing these avoided costs. If not, please explain the basis far a program evaluation without such an avoided cost estimate.

RESPONSE

Both the avoided cost of capacity and energy are used in cost-benefit analyses.

The avoided capacity costs are derived from the AURORAxmp model which takes deniand, energy and commodity forecasts to “build” capacity as it is economically justified to meet planning reserve margin requirements. The model not only builds resources to meet target reserve margins, but it also simultaneously provides estimates of the capacity price payments necessary to support the marginal entrants supplying capacity to the system. The methodology produces a development schedule, which is co-optimized for revenues derived froin the liaurly energy prices as well as the revenue stream for capacity payments. The result is, in effect, the average cost of the most economical supply portfolio. The AURORAxmp model is proprietary software on license fiom the EPIS, Inc. Further information about the model can be found at www.epis.com.

The projected avoided energy costs were determined using a production costing computer model known as PROMOD. PROMOD calculates expected monthly generation and energy expense for each generating unit in the AEP-East system and power purchases and sales by Kentucky Power and other AEP-East affiliates by simulating an economic dispatch o f the PJM portion of the AEP System.

http://www.epis.com




PROMOD is a proprietary software model licensed by AEPSC from NewEnergy Associates. PROMOD simulates how an electric utility operates and dispatches its generating units. Inputs to PROMOD include forecasted loads; forecasted price of fuel; prices and quantities for capacity and energy purchases and sales; capacities, availabilities and heat rates for generating units; and data that describe rules for committing and dispatching generating units. PROMOD's outputs include generation by unit; fuel consumption and fuel expense by unit; emissions of $02, NOX, C02 and mercury by unit; and purchases and sales of energy and their associated costs and revenues. Typical applications for PROMOD include fuel budget preparation, system economic studies, marginal and avoided energy cost analyses, and off-system transactions analyses.

Additional information on PROMOD can be found on w.newenergyassoc.com.


http://w.newenergyassoc.com





REQUEST

Provide the current estimates of KPCo avoided energy and demand costs, as relied upon in cost- benefit analyses. Provide an estimate of such costs as of 20 10; 20 15; 2020 (or similar periods if more readily available), consistent with LRP studies. Include summary level analysis sufficient to identify quantification of key variables included in estimates.

RESPONSE

Page 2 of this response is the AEP-East Projected Avoided Energy Cost and Projected Avoided Capacity Cost. Confidential treatment in the form of a Petition for Confidentiality is being sought for the market cost in the Projected Avoided Capacity Cost table.

WITNESS: Errol K. Wagner and Timothy C Mosher

Adm. Case No. 2007-00477 ItemNo. 17 Page 2 of 2

REDACTED

AEP System Projected Avoided Energy Cost

($IM W h)

AEP-East Zone (PROMOD)

2008 2009 201 0 201 I 2012 201 3 2014 2015 2016

ALL HOURS 18.4 20.6 26.1 25.6 27.6 28.0 30.4 30.9 31.9

WEEKDAY WEEKNITE 21.3 15.1 23.8 16.9

30.4 18.8 30.9 23.0

33.2 25.1 34.4 24.4 35.4 25.7

29.1 21 .I

31.9 22.2

WEEKEND 16.3 18.1 24.6 22.6 25.6 25.8 29.5 29.5 30.6

Projected Avoided Capacity Cost

AEP-East Zone (AUROW)

Market Cost $IMW-day $IkW-year

2008 2009 201 0 201 I 201 2 201 3 2014 201 5 201 6

KF'SC Administrative Case No. 2007-00477 An Investigation of the Energy and Regulatory Issues in Section 50 of KY's 2007 Energy Act




REQUEST

Consistent with the previous response regarding estimates of avoided energy and demand costs, provide m y sensitivity analyses associated with estimates of:

Carbon tax and/or cap-and-trade impacts IGCC carbon recapture Other carbon cost effects

RESPONSE

Sensitivity analyses were not carried out in the evaluations of DSM.



Commission Staff Second Set Data Requests Order Dated January 3,2008



REQUEST '

Based on comments made in the December 17 interview, AEP has taken carbon costs into account in its planning models and cost-benefit analyses. Please confirm or correct the following information:

Current estimates for IGCC assume a 30% energy requirement for carbon recapture. Tlie chilled ammonia process has an approximate IO- 1 5% energy requirement.

"The C02 recapture cost is estimated to be $40-50/ton. This represents a 60-70% increase over new conventional coal plant costs.

RESPONSE

Current estimates of capacity and energy reductions associated with carbon capture are: 15% on an IGCC unit 20 to 30% on a pulverized coal unit using an amine system a goal of 10 to 15% on a PC unit using chilled ammonia, which is not yet a commercial system

Carbon dioxide capture costs 60 to 70% over the cost of energy from a pulverized coal unit without carbon dioxide capture. These figures exclude potential energy costs impact of C02 allowances and carbon tax.

WITNESS: Enol K Wagner and Timothy C Mosher


Commission Staff Second Set of Data Requests Order Dated January 3,2008



REQUEST

Please provide a summary statement regarding how expectations of GHG restrictions arid potential taxes on carbon emissions have impacted analyses associated with the current IRP process.

RESPONSE

In the most recently completed IRP cycle, GHG restrictions and potential taxes on carbon emissions were represented in the analyses as a carbon tax in the base case. The base case coinmodity price scenario assumed an allowance cap-and-trade mechanism; allowance allocations to the generation sector based on historical heat input; annual allowance auctions; a 'safety valve' price for allowances; available carbon offsets; and banking of early reduction credits. In addition to the base case, commodity price scenarios were constructed with no, low, and high carbon dioxide allowance prices. These commodity scenarios were used as inputs to the Strategist model to determine their impact on plans and the resulting costs of various plans, to verify that the selected plan was reasonable.


KPSC Administrative Case No. 2007-00477 An Investigatian of the Energy and Regulatory Issues in Section 50 of Ky's 2007 Energy Act




REQUEST

Does the Company currently have tariffs that provide for interruption andor control of customer loads? If yes, please provide the following information (excluding any customers on Time of Day rates).

Identify customer class, and specific tariff. Number of customers on each tariff.

2006 and 2007 (as available) statistics on load interruptions -hours, amount of load interrupted, etc . Estimate of maximum peak load that can be interrupted based on current customers.

RESPQNSE

The Company currently has three interruptible service tariff offerings, Contract Service - Interruptible Power (Tariff C.S. - I.R.P.), Emergency Curtailable Service (Rider E.C.S.) and Price Cutailable Service (Rider P.C.S.). Tariff C.S. - I.R.P. is available to customers operating at subtransmission voltage or higher and Riders E.C.S. and P.C.S. are available to customers normally taking firm service under the Company's Tariffs Q.P. and C.I.P. - T.O.D. In 2006 and 2007, Kentucky Power had no customers taking service under any of the Company's interruptible service offerings.






REQUEST

Does the company have any customers on Time of Day (Use) rates? If yes, please provide the following information.

Identify customer class, and specific tariff. Number of customers on each tariff. Estimate of peak load reduction based on current customer base. Estimate of annual load reduction based on current customer base.

RESPONSE

Please see the attached page, which contains the number of customers, by class and tariff, talung service under the Company's various time-of-day service offerings for the most recent twelve- month period. No estimates of peak or annual load reduction are available.


TarifflRider

Residential Tariff RS

Administrative Case No. 2007-00477 Item No. 22 Page 2 of 2

Kentucky Power Company Time-based Metering Tariff Provisions Twelve Months Ended November 2007

DescriDtion of ServicelProvision

StoragelLoad Management water heating

Tariff RS-LM-TOD Load management time-of-day

Tariff RS-TOD Time-of-day

Commercial 8 industrial Tariff SGS Load management time-of-day

Tariff MGS (formerly Tariff G.S.) Recreational lighting Load management time-of-day

Tariff MGS-TOD Time-of-day

Tariff LGS Load management time-of-day

Tariff QP Off-peak excess billing demand

Tariff CIP-TOD Time-of-day billing demand

Number of Customers

140

196

1

1

71 55

75

9

91 *

16

All Tariff QP customers are eligible to participate in the off-peak excess provision. The number of customers utilizing this provision is not readily available.

Service DescriDtion

StoragelLoad Management Water Heating - Available to customers who install a Company approved water heating system which consumes electrical energy during off-peak hours and stores hot water for use during on-peak hours. Customer receives reduced energy charge for fixed block of monthly kWh.

Load Management Time-of-Day ServicelProvision - Available to customers who use devices with timedifferentiated load characteristics that consume energy only during off-peak hours and store energy for use during on-peak hours. Customer is served under time-of-day energy charges.

Time-of-Day Service - Optional tariff for customers that are capable and willing to consume electrical energy primarily during the Company's designated off-peak period to take advantage of the price differential between on-peak and off-peak energy rates

RecreationallAthletic Field Lighting Service - Available to customers for separately metered lighting of non-profit outdoor recreational facilities

Off-peak Excess Demand - Available to customers who operate primarily during the off-peak period and request installation of time-of-day metering in order to take service under this provision. A reduced rate is applied to the customer's off-peak demand usage in excess of on-peak demand.

TOD Billing Demand - Monthly billing demands for the Company's largest customer's (Tariff C.1.P - T.O.D.) are determined Separately for both the on-peak off-peak biJling periods. Off-peak demand rates are lower than on-peak demand rates, thereby encouraging off-peak usage by the customer.





REQUEST

At the time of the December 17 interview, it was indicated that KPCo currently has an odoff peak option in current rates, but there has been little customer interest, and no one had signed up to date. Please confirm or correct this statement. Please provide the tariff(s) that provide for the oidoff peak option. Please address any opinion KPCo management may have regarding what conditions are likely to be required to stimulate customer interest in this tariff option.

RESPONSE

Please see the Company's response to Item No. 22 for the Company's current tiine-of-day service offerings and number of participating customers. A copy of the Company's tariffs that provide time-of-use options to customers is attached, Customer participation in the Company's time-of- day service offerings may be limited by the current low price level of the Company's rates. The Company beIieves that mast customers have decided that the economic rewards associated with participating in the various time-based programs do not outweigh the inconvenience and cost associated with changing their usage characteristics in order to take advantage of the Company's time-of-day service offerings. Absent a material increase in the Company's costs, the Company does not expect a significant change in customer interest.


Administrative Case No. 2007-00477 Item No 23

Page 2 of 24

KENTUCKY POWER COMPANY Orihal Sheet No. 6-1 Canceling SheetNo. 6-1

P.S.C. ELECTRIC NO. 8 TARWFR5.

(Residential Senice)

,#VAntABlLITY OF SERW-

Avaifable for fall domestic e l d c .%mice through 1 meter to individual residential clrStOmaS bduding nual nsidentiaI customers engaged principany in agricultural pursuits

pATE (TaiWCodes 015,017,oU) ScrviceCharge ”-.”.-.-”.--..- f5.86permonth E n q y C h a m ................._. .._.__._._......_.................... 6.0026 per KWH

MINIMUM CHARGE.

Thts tariff is subject to a minimum monthly cbmg qual to &he Setvice Charge.

JWEL A D 3 U m CLAUsE.

Bills computed acurrding to tht mtes set forth herein will be iacreased or decreased by a Fud Adjustment Factor pm KWH cdculated in compliance with the Fuel Adjustment Clause contained in Shed Nos. 5-1 ard 5-2 of

SYSTEM SALES CLAUSE.

Bills computed according to the rates set forth herein will be increasai ar decreased by a System Sales Factor per KWH calculated in compbnce with the Systnn Sales Clause contained in Sheet Nos. 19-1 and 199 of Lhis Tariff Schedult.

Tariff Schedule.

gEMANDSID E MANAGEMENT ADJUSTMENT CLAUSE Bills computed armding to &e mtes set foah herein will be increased by an Expaimenbl DemandSide Management Adjustment Clause Factor per KWH dculatal in compliance with the Danand-Side Management Adjustment Clause oontained io sbeet N w 22-1 and 22-2 ofthis TariESchedule.

ENMROMMENTAL SURCHARGE.

Bills computed amrdiog to the ratrs set foxth herein wiIl be increased or d e c d by an Environmental Surcharge adjustmcrd b a d on B pacent of reverme in campliaace wjth the Enviromtal Surcharge contained in Sheet Nos 29-lthraugb 29-5 of the Taniff Schedule.

NET MERGER SAVINGS CREDIT.

Bills compured according to the rates sd forth herein will bc decreased by a Net Merger Savings Credit Factor per KWN calculated in compliance with the Net Merger Savings Credit contained in Sheet No. 23-1 of this Tariff Schedule.

CAPACITY CR ARGE

BIB computcd acconbg to the mki set fonh herein wilI be increased by 8 Capacity Charge Factor per KWH calcukited in compIianee with the Capacity Charge T i i ~ i f f ~ ~ ~ ~ a i n e d in Sheet No. 284 of this Tariff Schedule.

POME EmRRCY ASSISTANCE PROGRAN (BEAP) CHARGE

Applicable to all reddmtiaI customas Bills computed according to the rates set forth haein shall be incwsed by a HEAP charge of lo# per maa per month and shalI be shown on the residential customers bill as a separate line item. The Home Energv Assistance Pmmm chazge Win be applied to all residential electric bills mdered d h g the billing cycles commencing April 2006 and continue until otbmise d a t e d by the Public Service Commission. The Company will match the residential contriiutions to rbe HEAP program for a period of two yeas effective April 1.2W6 through March 31,2008.

DELAYED PAYMENT CHARGE

Bills unda thh tariff are due and payable Within fifteen (15) days of the maiIing date. On alI accounts not paid in full by the next b ~ o g date, an addjdonal charge of 5% of the unpaid portion w71 be made

(Con!’& On Sheet 6-2)

DATE OF I S S S March 20.2006 , DATE EFFECTIVE Service rendered OR and after March 30.2DD6

OF REGULATORY SERVICES FRANKFORT KENTUCKY NAME TITLE ADDRESS

Issued by authoritv of M Order of the Public Service Commission in Case No 2005-00341 dated March 14.2006

Administrative Case No. 2007-00477

KENTUCKY POWER COMPANY OriPinal Sheet No. 6-2 Canceling SheetNo. 6-2

P.S.C. ELECI’RlC NO. 8

TARIFF R.S. (Cont’d) (Residential Service)

SrORAGE WATER KEATRVG PROVISION,

This provision is withdrawn except for the present installations of c u m t custom- receiving saVice hereunder at premises served prior to April 1,1997.

If the customer installs a Company approved storage water heating system which consumes dectrical r n ~ only draig off-peak h o w as specified by the Company and stom hot water fur use during on-peak houri, &e fbllowingsM apply:

Tariff Code OU 013 014

(a) For Mirdrmrm Capacity of 80 gallons, the last 3 0 KwfI of use in any mwth shall be biilcd at 2.6641tp~r KWK @) For M h u m Capacity of 100 pllons, the last 400 KWH of use in any month shall be billed ol2.664$pc~KwH (c) For Minimum Capacity of 120 gallons or grater, the last SO0 KWH of use in any month shall be billed at 2664QB

per KR%.

These provisions, however. shall in no event apply to the first 200 KWH used in any month, which shall be billed in accordance with tbe “’Monlhly Rate” as set forth above.

For purpose of this provision, the a p e a k b i g period is defined as 7:OOA.M. to 9:WP.M. for all weekdays, Monday through Fnhy. Ihe off-peak biiiing M o d is defined as 9OOPM to 7.WAM fw all weekdap and aU ~ U K ofsahuday and Sunday.

The Company lrserves the right to inspect at all reasonable times the storage water h&g system and dmhs which qualify the rcssidmce for service under the storage water hater provision, and to ascertain by any m n a b l e mearts that the timbdifferentktiatal load chamc~stics of such devices meet the Company’s specifications. If the Company finds that in its sole judgment the availability conditions of this provision are being violaled, it may discontinue billing the Customer under Lhis provision and commence billing under the standad monthly rate.

fhfs provision is subject to tbe SnVice Charge, the Fuel Adjustment Clause, the System Sales Ciause, Ihe Demand-Side Management Clause, rbe Envimmental Surcharge, the Net Merger Savings Credit, the Capacity Charge and the Residential HEAP Charge factors as &Wed in the above monthly rate.

LOAD MANAGEMENT WATER-HEATLNG PROVISJON,

For residential mtomm who install a Company-approved load nranagmmt water-heating system which consumes electrid enmgy primarily during off-peak h a specified by the Company and stom hot water for use during on-peak hours, of minimum capacity of 80 gallons, the last 250 KWH of use in any m d shall be billed at 2.664$ p a KWT.I.

This provision, however, shall in no event apply b the f k i t 200 KWH usal in any month, which shall be billed in accordance with the “Monthly Rate” as sd forth above

For the purpose of this provision, the m-peak billing period is derined as ROO A.M. to YO0 PM. for all weekdays, Monday though Fndny. The off-peak billing pRiod is det;ned as 900 PM. to TOO A.M. for a11 weekdays and all hours of Saturday and Sunday.

The Company mews the rigb! to inspect at all reasonable times the load management water-hating system(s) and devics which qua@ the residence for service under the Load Management Water-Heating Provision If the Company finds that, in its sole judgment, (he availability conditions of this provision are beiig violaled, it may disconu’nuc billing the Cusromer under this provision and commence billing under the standad monthly rate.

This pmvisiod is subject to the Service Charge, the Fuel Adjustment Clause, the System Sales Clause, the Demand-Side Management Clause, the Eovimmmtal Susbarge, the Net Magcr Savings Credit, the Capaciey Charge and the Residential HEAP Chergc factors as stated in the above monlhly rate.

SPECIAL TERMS AND CONDITIONS,

This tiuiff is subject to the Company’s Terms and Conditions of Seavice

Tnis senrice is available to for residential purposes as we11 as for the usual farm uses outside the home, but it is not extended to operations of a commercial nature or operations such as processing, preparing or dishiuting produck not raised or produced on the fann, unless such operation is incideotal to the usual residential and farm uses.

(Tariff Code 01 1)

domestic customers engaged principaUy in agricuI!md pursuits whae service is taken through one meter

(Cont’d. On Sheet 6-3)

DATE OF ISSUE March 20.2006 DATE EFFECTIVE Service r e n d d on and after March 30.2006

TlTLE ADDRESS OF REGULATORY SERVICES FRANKFORT KENTUCKY

NAME

.Issued bv authoritv ofan Order of the Public Service Commission in Case No. 2005-00341 dated March 14.2006


Administrative Case No. 2007-00477 Item No. 23

Page 4 of 24

KENTLJCKY POWER COMPANY Oripinal SheetNo .a Canceling Sheet No. 6-3

P.S.C. ELECTIUC NO. 8

TARIFF RS.(Cont’d) (Residential Service)

SPECIAL TERMS AND CONDITIONS. (Cont‘d)

This tariff is available for single-phase service only. Where 3-phase power service is required andor where motors or beating equipment are used for commercial or industrial purposes, another applicable tariff win apply to such seiVice.

The Company shall have the option of reading meters monthly or bimonthly and rendering bilk accordingly. when bins are rendered bimonthly, the minimum charge and the quantity of KWH in each block oftbe ram shall be multiplied by W O .

Pursuant to 807 KAR 5:041, Smtion i l , paragrapb (5), of Public Service Commission Regulations, the Company $11 make an extension of 1,000 f e t OT less to its existing distribution line without charge for a prospective permanent residential customer served under h i s RS. Tariff.

Customers with PURPA Section 210 qualifying cogeneration andlor small power production faciiities shall rake service under Tariff COGENfSPP I or by special agreement.

DATE OF LSSUE March 20.2006 DATE EFFECTIVE Service rendered on and after March 30.2006

ORT. KENTU CKY OF REGULATORY SERVJCES FRAMCF TITLE ADDRESS NAME

Issued bv authorh of EIY Order of the Pubk Service Commission in Case No. 2005-00341 dated March 14.2006


Page 5 of 24

KENTUCKY POWER COMPANY Original Sheet No. 6-4 Canceling Sheet NO. 64

P.S.C. EJxcrRIc NO. 8

TARIFF ILS. - LN - T.0.R. (Residential Service Load Management Time-of-Day)

AVA.ILABEZ”Y OF SERVICE.

Available to customers eligible for Tariff RS. (Residential Service) who use energy storage devices with time-differentiated load charactaistics approved by the Company which consume electrical energy only during off-peak hours v i f i e d by the Company and store energy for use during on-peak hours

Households eligiile to be sewed under this tariff shall be metered through one single-phase multiplcregisttr meter capable of measuring electrical energy consumption during the on-peak and off-peak billing periods.

RsTF, (Tariff Codes 028,029,030,031,032,033,034,035) Service Charge ......................................................................... $ 8.36 per month Energy charge: AI1 KWH used during on-peak bii ig period ............................ 10.1 774 per KWH All KWH used during off-peak billing period ...... .........._......_... 2.6644 per K W

For the purpose &this Friday. The off-peak period is defined as 9:OO P.M. to 200 A.M. for all weekdays and all hours OfSaturday and Sunday.

CONSERVATION AND LOAD MANAGEMENT CRFDIT.

the on-peak billing period is defined as 200 AM. to 900 P.M. for all weekdays, Monday through

For the combination of an approved electric thermal stomge space heating system and water heater, both of which are desiped to consume elechical energy only between thehours of 9:OOP.M. and 7 : O O A M . for all days of the week, each residence will be credited 0.745$ per K W for all energy used during the off-peak bilting period, for a total of60 monthly billing.periods foilowing the installation md use of these devices io such residence.

MINIMUM CHARGE.

This tariff is subject ta a minimum monthly charge equal to the Savice Charge.

FUEL, ADJUSTNI)ENT CLAUSE.

Bills computed according to the tats set forth herein will be i n d or d d by a Fuel Adjustment Factor per KWH calculated in compliany with the Fuel Adjustment Clause contained in Sheet Nos. 5- 1 and 5-2 of this Tariff Schedule.

” SYSTEM SALES CLAUSE.

Bills computed according to the rates set forth herein will be in- or decreased by a System Sdles Factor per KWH calculated in comgiiiance with the System Sales Clause contained in Sheet Nos 19-1 and 19-2 of this Tariff Schedule.

DEMAND-SIDE MANAGEMENT ADJUSTMENT CLAUSE

Bills computed according to the rates set forth herein will be increased or decreased by a Demand-Side Management Adjustmenl Clause Factor per KWH calculated in compliance with the Demand-Side Management Adjustment Clause contained in Sheet Nos. 22-1 and 22-2 ofthis Tariff Schedule.

ENVXRONlMENTAL SURCHARGE.

Bills computed accordtrg to the rates set forth herein will be increased by an Environmental Surcharge adjustment based on a pacent of rewaut in compliance with the Environmental Surcharge contained in S h e Nos. 29-lthrough 29-5 of this T&ff Schedule.

(Cont’d On Sheet No. 6-5)

DATE OF ISSUE March 20.2006 DATE EFFEc;TNE S&ce rendered on and after March 30.2006

ISSUED BY E R E.K. WA ER OF REGULATORY SERVlCES FXANKFORT KENTU CKY NAME Trm ADDRESS

Issued bv authoritv of an Order of the Public Service Commission in Case No. 2005-DO341 dated March 14.2006

Administrative Case No 2007-00477 Item No. 23

Page 6 of 24

KENTUCKY POWER COMPANY OriPinal Sheet No. -5 Canceling Sheet NO. 6-5

P.S.C. ELECTRIC NO. 8

TARIFF R.S.-L.M.-T.O.D. (Cont’a) (Reiidenfial Service Load Management Timeof-Day)


Bills computed according to the rates set forth herein will be decreased by a Net Merger Savings Credit Factor pw KWH calculated in CompIimce with the Net Merger Savings Credit contained in Sheet No. 23-1 of this Tariff Schedule.

CAPACITY CRARGE

Bills computed according to the rates set forth h a i n will be increased by a Capacity Charge Factor per KWH cdculated in compliance with the Capacity Charge Tariff contained in She& Na 28-1 of this Tariff Schedule.

HOME ENERGY ASSISTANCE PROGRAM MEAP) CHARGE

Applicable to all residential customers. Bilk computed according to the rates set forth herein shall be increased by a HEAP charge of 106 per mater per month and sball be shorn on the residential customers bill as a separate Line item The Home Energy Assistance Program charge will be applied to all residential electric bills rendered during the billing cycles commencing April 2006 and continue until otherwise directed by the Public Service Commission The Company wiU match the residential contributions to the HEAP program for a period of two years effective Apdl 1,2006 hrough March 3 1,2008.

DELAYED PAYMENT CHARGEa

Bills under tfiis tariff are due and payable within fifteen (15) days of the mailing date. On all accounts not paid in full by the next billing date, an additional charge of 5% ofthe unpaid portion will be made

SEPARATE METERING PROVISION.

Customem who use elechic thermal storage space heating and watcr heaters which consume energy only during off-peak hours specified by the Company, or other automatirally cbntroIIed load management devices such as space andor wata heating equipment that use energy only during off-peak hours specified by the Company, shall have the option of having these approved load management devices separately metered. The service charge for the separate meter shall be $3.00 p& month.

SPECIAL TERMS AND CONDITJONS.

This tariff is subject to the Company’s Terms and Canditions of Service.

The Company reserves the Tight to inspect at all reasonable times the energy storage and Ioad management devices which qualify the residence for service and for conseration and load management credits under this tariff, and to e s c d n by any reasonable means that the timedifferentiated Ioad characteristics of such devices meet the Compnny’s specifications. If the Company finds, that in its sole judgmenf the availability conditions of this tarif€ RE being violaled, it may discontinue billing the Customer under this tariff and commence billing under the appropriate Residential Service Tarif€

Customers with PURPA Section 210 qualifying cogmeration and/or small power production facilities shall take service under Tariff COGEN/SPP I or by special agreement with the Company.

March 20.2006 DATE EFFECTIVE Sentice rendered on and after March 30,2006

FRANKFORT. K E W C K Y NAME TITLE ADDRESS

Issued bv authoritv of an Order of the Public Service Commission in Case No. 2005-00341 dated March 14.2006


KENTUCKY POWER COMPANY Original Sheet No. 6-6 CANCELING SheetNo.fX

PSC ELECTRJC NO. 8

TARIFF RS. -T.O.D. (Residential Service Time-of-Day)

AVAILABILCTY OF SERVICE

Aw-lable for rcsidcatial elecviC service through one single-phase mltiple-regista meter capable of mcasuting electrical enagy consnmption during the on-peak and off-peak bi(lingpniods to individual residmtial customus, including residentid customax engaged principally in agrjcultural plrrsllits. Availability is limited to the first 1,000 cuSmmcrs applgng for service under this tad€

c__ UTE. (Tariff Codes 036 and 037) Sexvice Charge ____.__I_...l._.._.._.̂ ..I._..I._....._., "."......,..._. S 8.36 permonth Encrgy charge: All KWH USA dutittg 0 n - M bil[ing period ......_LI. _..--.-. lO.ln# PwKWH All KWH used during off-peak billing period .lr..................... 2.664gf per KWH

For the parpose of this tariff, the on-peak billing period is defined as 7:M)A.M. lo 900P.M. for a8 vleekdays, Monday through Friday. The off-peak pmod is defined as 9:OOP.M. to 7:WA M for all weekdays and all h o w of Saturday and Sunday.

W M U M CHARGE

This briffis subject to a minimum monlhly charge equal to the Seavice Cbarge.

FUEL AaJUSTMENT CLAUSE

BiIIs computed according (0 the rats sd folth haein will be incnrased or derreased by a Fuel Adjustment Factor pa KWH calculated in compliance with tbe FueI Adjustment CIause contained in She& Nos. 5-1 and 5-2 of this Tariff Schedule.

SYSTEM SALE CLAUSE.

Bin computed according to &e raw set forth b- will be increased or decreased by a System Sales Facm pb KWK calculated in campliance with tbe System Sales Chase contained in She& Nos. 19-1 and 19-2 of this Tariff Schedule.

DEMANDSIDE MANAGEMENT AIU'USTMEKT CCAtJSJL

BiIIs computed according to the r a ~ s sd: fmh herein will bc imeased or decreased by an Demand-Side Management Adjustment Clause Factm per KWH ca1culak.d in compliance with thc h o d - S i d e Mansguneat Adjustment Clause contained in sheet Nos. 22-1 and 22-2 of hiis TarE Schedule

ENwzlONMENTAL SURCFURGE

BiIk computed accoiding to &e r a t s sd forih herein will be increased or decreased by an Envhnmmtal Surcharge Adjustment based on a percent of revenue in comptiance with &e Envimnmez~tal Sunbarge contained in Sheet Nor, 29-1 h u g h 29-5 of this TarB Schsdulc


Bills computed according Io the rata sa forth herein win be demased by a Net Merger Savings Credit Factor per KWH calculated in compliance with tho Net Merger Savings Credit contained in Sheet No. 23-1 of this TarifFSchedule

CAPAClTY CHARGE

Bills computed according to the r a t s s& ronh hercin will be increased by a Capacity C b q e Factor per KWH ~alculated in compIiance with thecapacity ChargeTariff contained in Sheel No. 2B-1 of this Tariff Schedule.

HOME ENERGY ASSISTANCE PROC RAM CWEAF9 CHARGE

AppIicabIe to an residential customas Bills computed according to the rates set firth herein shall be increased by a HEAP w e of lo# per meter per month and shall be shown on the residential customers bill 8s a scparatc line item The Home Energy Assislanffi Pmgnun charge win be applied to aII residential electric bills d a d during Le billing cycles commcncb& April 2006 and continue unhi otkerwisc dimted by the PubIic Service Commission Tbe Ccmpany will match the rsidentml contributions to the HEAP program for a period of two yeais effative April 1,2006 through Mamh 31, UIDB.

(Cont'd on Sheet No. 6-7)


DATE OF ISSUE March 20 2006 DATE EFFECTIVE SaVice rendered on and after March 30.2006

ISSUED BY €=CTOR DF REGULATORY SERVICES FRANKFORT. KENTUCKY

Issued bv authoritv of an order of the Public Service Commission in Case No.2005-00341 dated March 14.2006. NAME TITLE ADDRESS



Page 8 of 24

Oridnal Sheet No. Canceling Sheet No. 6-7

TARIFF RS. - T.O.D. (Cont’d) (Residential Service Timeof-Day)

DELAYJCD PAYMENT CHARGE.

BiIls under this tariff are due and payable within fifteen (15) days of the mailing date On all accounts not paid “in full by the next billing date, an additional charge of5% of the unpaid portion will be made.

SPECIAL TERMS AND CONDITIONS.

This tariff is subject to the Company’s Terms and Conditions of Service.

Customers with PURPA Section 210 quaiirying cogeneration andlor small power production facitities shall take service under Tariff COGWlSPP I or by special agreement with the Company.

DATE OF ISSUE March 20.2006 EFFECTIVE Service rendered on and after March 30.2006

1ssm BY DIRECTOR OF REGULATORY FRANKFORT. KENTUCKY NAME TITLE ADDRESS

Jssued bv authority of an Order of the Public Service Commission in Case No. 2005-00341 dated March 14.2006

Administrative Case No. 200700477

KENTUCKY POWER COMPANY Original Sheet No. a Canceling Sheet No. 7-1

PSC ELECTR.IC NO. 8

TARIFF S.G.S. (SnmU Genml Service) I

AVAILABlLI" OF SERmcE

Available for genRal m i c e to customers Wilhamge m o n w demands less than 10 KW and maximum monthly demands of less thao IS KW (extuding the demand saved by the Load Management Time-of-Day provisions).

RATE, (Tariff Code 21 I, 212) Service Charge _.-_-..-..._-_--_..... . ............................-. 16 11.50 per montb Enwgy Chaw= F& SOD KIUH per month. -__lr__l..-.._.__._...._._.l.....- 8.824# pm KWH All Over500 KWH pcrm onth ......................................... 4.805# paKWH

m M CFiARGE.

'Ibis tariff is subject to a minimum monthly cbarge equal to the Service Charge

FUEL ADJUSTMENT CLAUSE

Bilk computed accmding to thc r a t s set forth herein wi be incwsed or decmsed by a Fuel Adjustmtint Factor per KWH cafculatlrl h CampIiance witb the Fuel Adjustment Clause contained in Sheet Nas. 5-1 and 5-2 of this Tariff Schedule.

SYSTEM SALES CLAUSE

Bilk computed acconfing to the FIE set forth herein will be incmed or damased by a System Sales Factor p a KWH calculated in compIianR with the System Sales Clause contained m Sheet Nos. 19-1 and 19-2 of this Tariff Schedule.

DEMANDSIDE MANAGEMENT AD32IsTuEKT CLAUSE

Bills computed according to the tats set forth haein will be increased or decnased by an Demand-Side Management Adjustment Clause Factor p a KWH caIcuJated in compliance with the Demand-Side Mansgemem Adjustment Clause contained in Sheet Nos. 22-1 and 22-2 of lhis Tariff Sdredute, ds~ the custamcr is an industrial who has elccted to opf-oui in a c c o h e with tbc .?mm p m m n t to the Commission's Order in Case No. 95427.

ENVIRONMENTAL SURCHARGE,

Bills computed according to the rates sd %& herein will be incrcasod or decreased by an Environmental Surcharge adjustment based on a percent of revenue in compliance with tbtEwironmenta1 Surcharge contained in Sheet Nos. 29-1 tImugh29-5 of ihb Tariff Schedule


Bills computed according to the rates set foah hutin will be decrcased by a Net M a g u Savings Credit Factor p a KWH calculated in compliance wilh %e Net Merger Savings Cndit contained in Sheet No. 23-1 of this Tariff Schedule.

gAPACITY CRARGE.

Bilk computed according lo thc mte set forth haein wiU be increased by a Capacity C h g e Factor per KWH calcukted in compIiancc with the Capscity Charge lsriff contained in Shed No. 28-1 of this TWSchedule.

DELAYED PAYMENT CHARGE,

lhis tariff is net if account is paid in fuII within IS days of date oFbiLL On all accounts not so paid, an additional charge of 5% of the unpaid balance win be made.

(Cont'd on Sheet 7-2)

EFFECT7VE Service rendered on and after March 30.2006

TI7LE ADDRESS OF REGULATORY SERVICES FRANKFORT K E ~ C K Y

NAME

Issued bv authnritv of an Order of the Public Service Commission in Case No. 2005-00341 dated March 14.2006



Page 10 of 24

KENTUCKY POWER COMPANY original beet NO.. 7-2 Canceling Sheet No. a

PSC ELECTRiC NO. 8

TARIFF S.C.S. (Cont'd.) (SmaU General Service)

LOAD MANAGEMENT TJME-OF-DAY PROVISION.

Available to customers who use energy storage devics with Limc.diffaentiated load cbaracterstics appmvd by the Company which wnsume electrical aetgy only during off-peak how specified by the Company and store energy for use during on-peak horn, and Who desi to receive sewice under this pmvisiOn for their total rrquimcnh.

Customers who desin lo separalcly Wire their load management load to a time-of-day meter and thdr genal-usc load to a standard meler shall recaive service for both under theapmfiate provision of this tariff.

_I RATE. (Tariff Code 225,226) Service Charga ........................................................................ 1 5.10 per month Energy Chargc: All KWH used drrring ~n-peak biiiing p a i d ............... .............. 12a27$ p a KWH M KWH used d h g Offrpeak billingperiod .......................... 2.664# p a KWH

For the purpose of' this tariff, the on-peak billing period is defined as 7:OO AM. to 900 P.M. €or all weekdays, Monday through Friday. The off-peak billing period is defined as PO0 P.M. to 7:OO AM for ail weekdays and all hours of Saturday and Sunday.

TERM OF CONTRA(T.

The Company shall have h e right to qu i re conhacl~ for periods of one year or longer.

OPT7ONAL UNMETJJRED SERVICE PROMSlON,

Available to customers who qual@ for TarifFSGS and usc the Company's service for commercial purpow~ Consisting of small fixed electric loads such as ha& signals and signboards which can be sewed by a standard m i c e drop fmm the Company's existing secondary distribution systan This service will be furnished at the option ofthe Company.

Each separare service delivery point sMI be considered a conkact location and shall be separately bitled under the service contract. In the event one Customer has s e v d ac~ounls for like service, the Company m y meter one account to determine rbe appropriate kiIowaK-hour usage applicable for each of the aCcOUa5.

Tbe Customa shall furnish switching upipmcnt satisfactory to the Compaoy. Tbe Customa shall notify the Company in advance of every change in connffiled load, and the Company maws the right to inspect L e cuzlomei's equipment at any time to vni& the actual load. In the event of the customds failun to notify the Company of an increase in load, the Company re~cnes the right to refuse to s a y e Ihe contracl location thapafter under ihis pmvision, and shall be Baitled 10 bill the customer ntroactivcly on the basis of the increased load for the full period such load was connffited or the eartiest date allowed by Kmtucky stamm whichever is appficablc

Calculated energy use per month shall be equal to the contmct capacity specified at the contract location times the number of days in h e billing period times the speciFted hours of operation. Such calculated energy shall then be billed at the following rater:

RATE. (Tariff Code 204 0 , 2 1 3 (Lhu))

Customer Charge. ................................................................ S 7.50 per month EnergYCharge: First 500 K W per man th .................................................. B.g24# per KWH All Over 500 KWH per mon th ............................................. 4.805# per KWH

SPECIAL TERMS AND CONDITIONS

?his &riffis subjcct to the Company's Terms and Conditions of Sunice

Cmomer wkb PURPA Section 210 quaIiFymp cogeneration d o r smll power production faciIities shall take servicc under I or by special agreement with the Company.

Tarif€COGEN/SPP

D A E OF ISSUE March 20,2006 / DATE EFFECTIVE5 Service rendered on and after March 30.2006

OF REGULATORY SERVICES FRAM(FDRT KENTUCKY NAME TlTLE ADDRESS

Issued bv authoritv of an Order of the Public SaVice Commission in Case No. 2005-00341 dated March 14,2006


Page 11 of 24

hENwcxY POWER COMPANY Ori~inal Sheet No. g=1 Canding Sheet No. 8-I

P.S.C. ELEcTRlC NO. 8 ~

TARIFF M.C.S, (Medium General. Service)

AVAILABILITY OF SEXVICE.

Available for general service to customers with average monthly demands greater than 10 KW or maximum monthly demands greater than 15 KW, but not more than 100 KW (excluding the demand saved by the h a d Management T i f - D a y provision).

Existing customers not meeting the above criteria will be permirted to continue servicc undet present conditions only for continuous snvice at the premks ocoupied on or prior to Decanber 5,1984.

Service Vohee .sa!&Y m Subtransmissioq

Tariff Code 215,216,218 217,220 236 Service Charge per Month E 1350 $21.00 S 153.00 DemandChargeperKW s 131 I1 28 I125 EnergyCbarpe:

“monthly biliing d d 6.9886 6318$ 5.7446 K W equal to 200 times KW of

KWH in excess of 200 times KW of monthly billing dexnand 5.8266 5.526fl 5.321 $

RECREATIONAL LlGHTMC SERVlCE PROVISION,

Available for service to customers with demands of 5 KW or greatct and who own and maintain outdoor sghtiag h i t i t ies and associated equipmen! d I i i at bastball diamonds, football stadiums, parks and other simb rDcreational arras This service is available only during the hous between sunset and sunrise Daytime use of energy unda rhis rate is sbictly forbidden exccpf for the sole purpose of testing and maintaining the lighting system. An Tern and Conditions of Service applicable 10 Tariff M.G.S. customw wiil also apply to recreational lighting c l l ~ ~ ~ r n m except for the Availability of Servicc

RATE. (Tariff Code214)

ServiceChargc ..-__._.. .. ..._.__-. .. . ................................... ..St3.50 pa month Energy .- ..................................... ”.”.......-..,..” 6.519$ perKWH

This tariff is subject to a minimum charge equal to the sum of the sewice c b g e plus the demand charge multiplied by 6 KW.

The m i h u m monfhfy charge for industria1 and coal mining customas mnuacting for 3-phase service after October 1,1959 shall be 65.46 pm KW of monthly biLIiog demand, subject to adjustment as detamined unda the fuel adjustment clause, system sals dause, demand-side managsnslt clause, the envimmental sunhrge, the nb merger savings credit, the capacity charg~~, plus L e smice c h a w

FUEL ADJUSlMENT tXAIISE,

Bi% computed according to &e nit5 set forth hereib will be increased or dffimsed by a Fuel Adjustment Factor per KWH calculated in compliance with the Fuel Adjlrstment Clause contained in Sheet Nas. 5-1 and 5-2 of this Tariff Schedule.

SYSTEM SALES CLAUSG

Bills computed according to the 1at5 set forth hemin will be inc~ased ordecrraspd by a System Sals Factor per KWH calculated in compliaoce with the System Sales Clause contamed in S h e Nos. 19-1 and 19-2 of this Tarif€Sched~k

DEhlAND-SIDE MANAGEMENT ADdtrSTMENT CLAUSE.

Bills: computed accordkg to h e rates set forth herein will be increased w decreased by an Demand-Side Mimagment Adjustma Clause Factor pm KWH calculated in compliance with the Demand-Side Management Adjustment Clause contained m Shect Nos. 22- 1 and 22-2 of this Tarif€ Schedule, wlltss the customer is an industrial who has elected to opta t in acconlaoce with the t a m pumant to the CommiUion’s M e r in Casc No. 95427.

(Cont’d. On Sheet No. 8-2)

DATE OF ISSUE March 20.2006 DATE OF EFFECTIVE Service rendered on and after March 30.2006

REGULATORY AFFATRS FRANKFORT.. KENTUCKY

Jssued bv authoritv of an Order of the Public Service Commission in Case No. 2005-00341 dated March 14.2006 NAME mLE ADDRESS

Administrative Case No. 2007-00477 Itern No. 23

Page 12 of 24

K.ENTucKY POWER COMPANY Original Sheet No. 8-2 Canceling __ Sheet No. 8,2

PSC !2LEiCTRIC NO. 8

TARIFF M.G.S. (Conl'd.) (Medium G e n d senice)

ENVIRONMENTAL SURCHARGE.

Bills computed according to the rates set forth hein will be incRased or decreased by an Env'mmlal Surcharge Adjusbnmt based on a pscem of mvme in compliance with the Envhnmatd Surcharge contained in Sheei Nos. 29-1 through 29-5 of this T d Schedule

.NET MJCRCER SAVINGS W D n .

Bills oomprqcd according to tbe rates set foah he& win be d t c d by a Net Merger Savhg6 Credit Factor p a KWH calculated in CompIiana wifh &Net Merger Savings C d t contained m Sheet No. 23-1 of this Tariff Schedule.

CAPACTIT CFIARGE

Bills cornpuled according to the rate set forth he& wiU be incnased by a Capacity Charge Factor per KWH caiculated in compliance with the W t y ChargeTadff conrained in Shes No. 28-1 of this TanESchedule.

p.

m's Gff k net ifaccounl is paid in full withia 15 days of date of bill. On all accounts not so @d, an additional charge of 5% of the unpaid baiancc will be made.

MPXERJZD VOLTAGE.

The mtis set forth in this tariff an h a d upon the ddivay and measurements of e n ~ g y at the same voltage, fhus measurement will be made at or compmsated to the delivery voltage. A! the soie discretion of the Compaay, such compensation may be achieved through the use af loss compmsating equipment, the use of fonnulas to calculale losses or the application of mulliplias to the m a d quanlitics. In such cases, the metered KWH and KW value will be adjusted for billing purposes. If ffic Company elects to Just KWH and KWbased on multipliexs, the'adjustmmt shall be in a c c a h with the following:

(I)

(2)

MONTBLY.BLLING DEMAND.

Energy supplied hereunder will be deIived through not more &an one single phase and/or polyphast meter. Customer's demand will . be taken monhiy to be the highst registration of a 15-minute intcgmting danand meter or indicator, or the highest registration of a

thermal typ d d meter. The minimum monthly billing demand sMI not be less than (a) the minimum billing demand of6 KW, or @) 60% of the greater of ( I ) the customer's contmct capacity in mcess of IO0 KW or (2) rhe customer's highest previously established monthly billing d d during the past I1 monk in excess of 100 KW. .

Measwmenls taken at the lowside of a nrstomer-omed transforma will be multiplied by 1.01.

Measurements &ken at thehigb-side of a Company-owned transforma will be multiplied by 0.98.

LOAD MANACEMENTTIME-OE-DAY PROVISION. (TadEcWieS 223,224)

Available to customers who use enggy stomge devica with time-diffdated load cbaracteriStics appmved by ffie Company which consume electrical anxgy only during off-peak houxs specified by the Company and store energy for use during on-peak hours, and who desk to &e service under this pmvision for their total requirements.

Custamm who d s h to separalely win: theu load management load to a hme-ofday meter and Ulwr generalase load to a standard metershall receive service for both under the appmpde pruvision of this tarX

DATE OF ISSUE March 20.2006 RATE EFFE?XVE Service rendered on and &a March 30.200t5

OF REGULATORY SER.VICES FRAWORT KENTUCKY NAME TITLE ADDRESS

issued by authoritv of an Order of the Public Service Commission in Case No. 2005-00341 dated March 14.2006


Page 13 of 24

KENTUCKY POWER COMPANY. Original Sheet No. 8-3 Canceling Sheet No. 8-3

P.S.C. EIEmRlC NO. 8

TARIFF M.CS (Cont'd) (Medium General Service)

RATE. Senrice Charge ............................................................. .. ....................... .- ....._... $ 3.00 per month Energy charge: All K W H used during on-peak billing period .................................................. A11 KWH used during off-peak billing period ................................... ..........

11.391 $ per KWH

. 27781 6 p a KWH

For the purpose of this tariff, the on-peak biliing period is defined as ROO AM. to 900 P.M. for all weekdays, Mondey through Friday. The off-peak billing pen'od is defined as 9:OO P.M. to 7:OO A.M. for all weekdays and all hours of Saturday and Sunday.

TERM OF CONTRACT.

Contracts under this tarif€ will be required of customers with normal maximum demands of 500 KW or greater. Contracts under his tmiff will be made for an initial period of not less than 1 year and shall remain in effect &hereafter until either party shall give at least 6 months' writta, notice to the otha of the intention to terminate the contract. The Company win have tbe right to make contracts for period s of longer than 1 year and to require conham for Customers with normal m&wn demands of less than 500 KW.


This tariff is subject to the Company's Tenns and Conditions of Service.

This tariff is dso available to customers having other soum of energy supply but who~desire to purchase sbanaby or back-up electric service from the Company. Where such conditions exist the Customer shall contract for the maximum demand in KW which the Company might be required to furnish, but no less than LO KW. The Company shall not be obIigated to supply demands in excess of that contracted for. Where service is supplied under the provisions of this paragraph, the bining demand each month shall be the highest determined for the cunent and previous two bilfmg periods, end the minimum charge shall be as set forth under paragmph 'Mimum Charge'' above.

This tariff is available for resale service to mining and industrial customers who furnish senrice to customer-owned camps or villages whae living quarters are rented to employees and where the Cuswmer purchases power at a single point of both their power and camp requirements.

Customas with PURPA Section 210 qualifying cogeneration and/or small power production facilities shall take Savice under Tariff COGENlSPP I or 11 or by special agreement with the Company.

(Cont'd on Sheet 8 4 )

DATE OF ISSUE March 20.2006 DATE EFFECTIVE Service r e n d d on and after March 30.2006

NAME TITLE ADDRESS

Issued by authorib of an Order of the Public Service Commission In Case No. 2005-00341 dated March 14.2006


Page 14 of 24



TARIFF M.G.S.-T.O.D. (Medium General Service Trmeaf-Day)

AVAnABILlTY OF SERWCE

Available for general service to customem with n o d maximum demands greater than IO KW byl no1 more thea 100 KW. AvaiIabiLity i s limided tD the first 500 customm applying for s a i c e under this tariff.

RATE, (Tariff Code229,230)

Senice C k e . ....__..__.._......._.....-...._-..- ”.-.- e ........._.. e ................................... S; 1430 per month Endgycharge:

AllKWdmningortpeakbillingperiod ........... _....._.___...__._._.. ... 1!.39I#paKWH

All KWH used during off-peak billing perid .” ......... 2.781$ pa KWH

For the p w e of rhis tarif€, the on-@ bilring period i s d&ed as 7:OO AM. to 990 P.M. for all weekdays, Monday &II’OI@ Friday. The off-peak biiring period is defined as 9:00 PM. to 7fiO AN. for all weekdays and all h m of Sahvday and S h y .

MINIMUM CHARGE

This tariff is subject to a znirimurn moathly chap qual to the Service charge.

FUEL A D J U s l u E N T CLAUSQ

.Bills computed accordiog to the mmi set fa& herein win h increased or decreased by a Fuel Adjustment Factor per KWH calculated in compliance with the Fuel Adjustment Clause contained in Sheet Nos. $1 and 5-2 of this Tariff Schedule.

B S I E M SALES CLAUSE.

Bills computed according to che rates set forth haen will be increased or dereased by a Syskm Sals Factor per KWH wlwlated in compkme with the System Salai Clause contained in ShedNm 19-1 and 19-2 ofthis Tariff Schedule.

PEMANBSIDE MANAGEMENT ADJUSTMENT CLAUSE.

Bills computed according to the l i f t s set fonb herein w f i be incrmsd by a Demand-Side Managanent Adjushnenf Clause Factor per K W H calculated in compliance with the Demand-Side Management Adjusb;nent Clause contained in Sheet Nos. 22-1 and 22-2 of this Tad€ Schedule, unless the customer is an indusfrial who has elected to opt-out in accordance with the tams pursuant to the Commission’s Order kk Case No. 95-427.

ENWRONMENTAL SURCHARGE

Bgs computed according to the mies set forth herein will be incmsal or decreastd by an Envimmnental Sumbrgc Adjustutent based on a percent of revenue in compliance with the Environmental Sulcharge conuined in Sheet Nos. 29-1 through 29-5 of lfiisTariff Schedule.


BiUs computed acceding lo the mta set forth herein wiU be decreased by a Net Merga Savings C d t Factor pa KWH calculated in compliance with rha Net Magcr Sr~vings Credit cOmained in Sheet No. 23-1 of this Tariff Schedule

-4 AR

Bills cornpuled accordiog to the rat= sd forth herein will be incmscd by a Capacity Charge Factor pa KWH calculated in comptirnc~ with the Capacity Charge Tariff contained in She No. 28-1 of this Tariff Schedute.

(Cont’d on Sheet 84)

DATE OF ISSUE March 20.2006 DA’E EFFECTIVE Service rendered on and after March 30.2006

DRECTOR OF R!XULATORY SERVICES FRANKFORT KENTUCKY NAME TITLE ADDRESS

Issued by authorihr of an Order of the hrblic Service Commission in Case No. 2005-0034 1 dated March 14.2006


Page 'I 5 of 24

KENTUCKY POWER COMPANY Orieinal Sheet No. 85 Canceling Sheet No. 8-5


TARWF M.G.S.-T.O.D. (Cont'd) (Medium General Service TimPof-Day) 1

DELAYED PAYMENT CHARGE.

"his tariE is net if account is paid in full withim 15 days of date of bill. On all accounts not so paid, au additional charge of 5% of the unpaid balance wiU be made.


This tariff is subject to the Company's Terms and Conditions of Service

Customers with PURPA Section 210 qualifying cogeneration andlor small power productions facilities shall take s m k ~ under Tariff COGEN/SPP 1 or by special agreenient with the Company.

DATE OF ISSUE March 20.2006 . DATE EFFECTIVE Service m d m d on and after March 30.2006

DIRECTOR OF REGULATORY SERVICES FRANKFORT. Km\prmCKY NAME TITLE ADDRESS

Issued bv authoritv of an Order of the h b l i c Service commission I Case No. 2005-0034 I dated March 14,2006

Administrative Case No. 2007-OM77 Item No. 23

Page 16 of 24

KMTUCXY POWER COMPANY Oripinel Sheet No. 9J Canceling-* Sheet No.

PSC ELECTRIC NO. 8

TAJUFF L.G.S. (Large General Service)

AVAILABILITY OF SERVICE.

Avdabk fm gencml senrice to cudornrm, with normal maximum d d greater than 100 KW but not mort? than 1,OOO KW (excluding the demand served by the Load Management TmecoFDay pmvision).

Existing enstomcls MI meeting the above criteria will be pamitted to co&ue service d e r present conditions ody for contiouous mice at the planks occupied on or prior 10 December 5,1964.

- RATE. Service Volta .

Secondary Primary Subtra~tsmissio~ Transmission Tariffcode 240,242 244,246 248 250 Service charge per Month $85.00 $127.50 $535.50 $535.50

Excess Reactive Charge pa KVA $ 2.97 $ 2.97 f 297 $2.97 Energy Charge per KWH 5.120$ 4.415p 3.350jt 2.965d

Demand Charge per KW $3.45 $3.36 $3.30 $3.24

MINIMUM CHARGE.

Bills computed andar tbe above rate are subject to n monthly minimum cbaqp comprised of the sum of the service charge and the minhmun demand charge. The minimum demand charge is the product of the demand charge per KW and the monthly billing demand

FUEL ADJUSTMENT CLAUSE

Bills computed according to the ram set forth herein wiU be iacreased or dacneased by a Fuel Adjustment Fa- PR K P M ~a lc~~ la ted in compliance With the Fuel Adjustment CIiiuse contained in Sheet Nos. 5-1 and 5-2 of this Tariff Schedule,

S Y ! V E M SALES CLAUSE,

Bilts computcd accodng 10 the mV.s with the Systwn Sales Clause conlained in Sheet Nos. 19-1 and 19-2 ofthis Tariff Schcduic

DEMANPSIDE MANAGEMJIJVT ADJUmENT CLAUSE.

BiUs computed according to he rates set forth herein will be increased or decreased by an Demand-Side Management Adjustment Ciause Factor per KWH calculated in coqliance with the Demand-Side Managanent Adjustment Clause contained in Sheet Nas. 22-1 and 22-2 of this Tariff Schedule, unlss he custom is 80 imiustrial who has elected to optsut in accordance with the tens putwant to the Commission’s Onla in Case No. 95-427.

EPMRONMENTAJ, SURCHA RGE;

Bills computed according lo the rates set forth herein will be incFeased or d e e d by an Envknmental Sm:hargc Adjuslmea! basd on a percent of revenue iu compiiance. with the Envhnmental Sunhargc contained in Sheet Nos. 29-1 rhrough 29-5 of this Tariff Schedule.

BET MERCER SAMNGS CREDfT.

Bills computed according to the ra t s Sel fofi herein tlic Nd Merger Savings Credit contained in Shcet No. 23-1 afthis TarifFSchcduSe.

forth herein will be increased or decrpaspd by a System Sals Factor per KWH caIcolated in compliance

be decreased by a Net Merger Savings Credit Factor per KWH calculated j, compliance with

CAPACITY CR ARGE

Bills computed according (0 the rates set forth he-rein will be increased by a Capaciry Charge Factor per KWH calculated in compliance with the Capaci$ charge Tariff cwtdined in Shed No. 26-1 of this Tariff Schedule.

(Cont’d. On Sheet No. 9-2)

DATEOFISSUE Mmh20.2006 . DATE EFFECTIVE Service r e n d d on and after March 30,2006

ISSUEDBY ER. WA ER DIRECTOR OF REGULATORY SERVICES FRANKFORT KENTUCKY NAME TMLE ADDRESS

- Issued bv author+ of m Order of the Public Service Commission in Case No. 2005-00341 dated March 14.2006

Administrative Case No. 2007-OD477 Item No. 23

Page 17 of 24

KENTUCKY POWER COMPANY Original Sheet No. Cancefig Sheet No. 9-2

PSC ELECTRlC NO. 8

TARIRF L.G.S. (Cont'd.) (Large General Service)

I DELAYED PAYMENT CHARGE.

This tariff is net if accounl is paid in full within 15 days of date of bill On all a~counB not SO paid, an addirional charge of 5% of the mpaid balaace ' will be madc

METERED VOLTAGE

The rats sd forth in lhis lariff arc based upon the delivay and measuranent of en= at the same voltage, thus measurunm Wiu be made at oi compenmed to the delivery voltage. At &e sole discretion of the Company, such compensation may be achieved lhrougft the use of loss compensating equipment, the ux of fomk to calculate lmes or thr: application of multipiien to the m~crcd quantities In such cases. the metered K W and KW vaiuec will be adjusted for billing purposes. If the Company elects to adjust KWH and KW based on multipliers, the adjustment shall be in accordance with the following

(1)

(2)

Measuruncnts takw at the low-side of a C I I S ~ O ~ K - O ~ e d transformer will be multiplied by 1.01.

Measurn- taken at the highside of a C ~ m p a n y - ~ ~ n e d transFormar will be multiplied by 098.

MONTHLY BILLING DEMAND.

Billing demaod in KW &all be lakar eacb month BS fhc bighest 15-minute i n t w peak inkilowatls as registered during the month by a 15-minute intcgdng demand meter m indicator, or at Lhe Company's oplion as the highen registration of a thermal type demand meter or indicator. Ihe monlhty billing demand sa stabiished shall in no event be Icss than 60% of thc g m m of (a) the customs's contiact capacity or (b) Lhe cusloma's highest previously stablisbcd monthly bilfing dunand during tbe past 1 I months.

DETERMINATION OF EXCESS KIUIVOLT-AMPERE W A ) DEMAND

The man'mum KVA demand sball bedetumked by theuse of a multiplier eqnal D h e rvsiprocal ofthe avaage power kctor recorded during the billing month, leading OT lagging, sppEed to the met& demand The excess KVA demand, if any, shall be thc amount by which the maxirmrm KVA demand established during the b i n i pCnod akeais I 15% of the kilowatts of mettired demand.

LOAD MANAGEMENT TLME-OF-DAY PROVISION.

Available to customm who LLE~ energy storage devices with timc-diffffentiated load chamcte&ics appmvcd by the Company which consume elwtrical energy only during off-peak houn specified by the Company and store energy for use during oh-peak hours, and who d a i n lo meive service undmthis provision for their total requiren~mts

Custommi who desire to scparalely wire their load managcment load to a tirneofhy met^ and their gcnaal-use load to a standard mum shan receive service br both undn the apprupde provision ofthis tariff.

(Tariff Code25I)

SdceCharge ....__.........-_.-__. . - ...._ -...w._....... $81.80 pamonth Enngy chalgc:

All K W used during onpeak biEng period ..-. 9.5926 p a KWH All KWR used d k g off-peak billhg period ................_......... ..-........-.......- 2.7536 pa K W

For the pqtoseof this tariff, the on-pcak billing period is deSned as 7:OO A.M. to 9:M) P.M for aU weekdays, Monday Lhrough Friday. Tbe off-peak billing period is defined as 9:OO P.M. to 700 AM. for an weekdays and all hours of Satunlay andSunday.

(Cont'd. On Sbcet No. 9-3)

DATE OF ISSUE March20.2006 ~ DATE EFFECTIVE SnVice rendered on and R ~ ~ C T March 30.2006

ISSUED BY %.$W=DIRERECTOR OF REGULATORY SERVICES FRANKFORT. KENTUCKY NAME TITLE ADDRESS

issued bv authoritv of an Order of the Public Service Commission in Case No. 2005-00341 dated March 14.2006


Page 18 of 24

KENTUCKN POPIER COMPANY Orircinal Sheet No. Cancelinp: Sheet No. s

P.S.C. ELECTTUC NO. 8

TARIFF L.G.S. (Coned) (Large General Service)

TERM OF CONTRACT.

Contracts under this tariff will be made for customers requiring a n o d maximum monthly demand behvem 500 KW and 1,000 KW and be made for an initial period ofnot less than 1 year and shall remah in effect thaeaftix u n d either party shdl give at least 6 months written notice to the other of the intention to terminate the cantract The Company reserves the right to require initial contracts or periods greater than 1 year. For customers With demands less than SO0 KW, a contrace may, at the Company's option, be required.

Where new Company facilities are required, the Company reservis the right to require initial contracts for periods greater than one year for $1 custOmaS served under this tariff.

A new initial contract period will not be required for existing customers who change their contract requhents after the original initial period unless new or additionat fanfities are required.

_CONTRACT CAPACITY.

The Customer shall set forth the amount of capacity contracted for (the "contract capacily") in an amount up to i,OOO KW. Contracts will be made in multiples of 25 KW. The Company is not required t~ supply capacity in excess of such contract capacity except with arpress written consent of the Company.

SPIECtAL TERMS AND CONDITIONS.

This tariff is subject to the Company's Terms and Conditions of Senice.

This tariff is also available to,Customers having other sources of energy supply but who desire to purchase s y d b y OT back- up eleCtnc service from the Company. where such conditions exist the customer shall confract for the maximum amount of demand in KW; which the Company might be required to furnish, but not less than 100 KW nor more than 1,000 KW. Tbe Company shall not be obligated to supply demands in excess of the contract capacity. When: service is supplied under the provisions of this paragraph, the billing demand each month shalI be the highest d e m i n e d €or the current and previous two billings periods, and the minimum charge shall be as set forth under paragraph ''Minimum Charge" above.

This tariff is available for resale service to mhing and industrial customers who furnish service to custorner~owntd camps or villages where living quarters are rented to employees and where the customer purchases power at a single point for both his power and camp requirements.

Customers with PURPA Section 210 qualiSying cogeneration and/or small power production bcilities shall take savice under Tariff COGEN/SPP I or I1 or by special agreement with the Company.

DATE OF ISSUE March 20.2006 DATE E F F E C T m m

JSSUED BY E.K. WAG R REITOR REGULATORY SERVICES NAME TITLE ADDRESS

FRANKFORT. KENTU CKY & N W C

Issued bv authorihr of an Order of the Public Service Commission in Case No 2005-00341 dated March 14.2006


Page 19 of 24

'


ILIININIUM CHARGE.

This tariff h ahjeat to n niinimum charge equal to the S w i m Chtqe plus the Demand C h q e per KW multiplied by the biliing denland

FUEL ADJUSTMENT CLAUSE.

Bjlls computed according to the witii Uie Fuel Adjustment Clause contained in Sheet Nar 5-1 and 5-2 of this Tnrilf Schedule.


Bills computed according to tlie r;Us set forth herein will be increaed or decreased by a System Sales Factor per KWH calcula~ed in conJiance with I h t System Sales Ciause contnined in Shcct Nos. 19-1 and 19-2 of thisToriffSchedutc.

DEMANDSIDE MANAGEMENT ADJUSTMENT CLAUSE.

sel Forth herein will be increased or d e c k e d by a Fuel Adjustment Facbr per KWH calculated in cornplioncc

Bills computed according Lo the ntes sei forth herein will be incrwed or decreased by a Demand-Side Management Adjustmeiii Clairse Factor per , KWH cnlcuhted in conrpliance rvitb he Demand-Side Maitagerneni Adjusfment Clause conbined in Sheet Nos. 22-1 and 22.2 of Usis Tpriff Schedide, unless the customer is an industrial who has elected to op(sut in accordance with the terns pursuant to the Commission's Odar irr Cme No. 95427.


Bills coinpuled according to the rates set fonh herein will bc increased or decreased by a Surcharge Adjustment based on a perceril of revenue in cornplian~ with the Surcharge wntained in Sheet Nos. 29-1 through 29-5 of this Tariff Schedule.


Bills computed according to Ute ramset forth herein wit1 be decreased by n Net Merger Savings Credit Faeior per KWH calculated in compliance with Uie Net Merger Snviiigs Credit contained in Sheel No. 23-1 of his TariKScliedule.

C A P A C m CHARGE.

Bills computed according to the rates set forth herein will be increased by a Cnpacity Charge Factor per KWH calculated in compliance with the Capacity Charge Tariff contained in Sheet No. 28- 1 of this Tariff Schedule.

(Cont'd. On Sheet No. 10-2) -

Orieinal Skeet No. 10-1 Canceling Sheet No. .)o-I


TARFF Q-P. (Quantity Power)

AVATLABLITY OF SERVICE.

Available for commercial nnd industrial customers with demands less lhan 7,500 KW. Ciislomers shail contmcL for a definite amount of electrical capacity in kilowat&, which skill be sufftcient to mtet norma! maximum requirements, but in no w e shall Ihe conWac[ capncity be less than 1,000 KW.

Service Voltnoe $tcondary Primary Subtrmsmission Transmission

Tariff Code 356 Sewice Charge per month Danand Charge per KW

Of monhly off-peak excess

EIWW Ch'Te per KWH 2.096f!

S 276.00

$1328 Of monlhly on-peak bitting dcrnand

biliing demand 54.79

Reactive Demand Charge For each kilovar ofm&.irnum leading or lagging reactive demand in excess of 50 pernu of the KW of konfhly metered demand ..........................

358 S 276.00

$11.53

$3.31 2.044$

359 $662.00

$8.81

%O.M 2.012#

260 51.333.00

$7.41

$0.77 I .9S7$

Issued by nuthoritv of an Order of the Public Service Commission in Case No. 2005-0034 I dated March 14.2006


Page 20 of 24

KENTUCKY POWER COMPANY Original Sheet No. 10-2 Canceling Sheet No. )d-2

P.S.C. ELECTRiC NO. 8

- TARIFF Q.P. (Cont'd.)

[Quantity Power)


This tariff is net if account is paid in full within 15 days of date of bill. On all accounts not so paid, an additional charge of 5% of the unpaid balance will be made.

METERED VOLTAGE.

The rates set fortit in this tariff are based upon the delivery and measurement of energy at the same voltage, thus mewureinent will be made at or compensated to the delivery voltage. At the sole discretion of the Company, such compensation may be achieved through the use of loss compensating equipment, the use of formdlas to calculate Iosses or the application of multipliers to the metered quantities. In such cases, the nietered K W and KVA dues wiIl be adjusted for billing purposes. If the Company elects tD adjust KWW and KW based on multipliers, the adjustment shall be in accordance with the following:

( 1) (2)

Measurements taken at the low-side of a customer-owned transformer will be multiplied by 1 .O I . Measurements taken at the high-side of B Company-owned transformer will be multiplied by 0.98.


The on-peak billing demand in KW shall be taken each month as the single highest IS-minute integrated peak in KW as registered during the month by a demand meter or indicator, or, at the'Compmy's option, as the highest registration of a thermal type demand meter or indicator. but the monthly on-peak billing demand so estabIished shall in no event be less than 60% of the greater of (a) tlie Customer's contract capacity set forth on the contract for electric senice or (b) the customer's highest previously estabIished monthly bilting demand wing the past I I months,

Off-peak exces billiirg demand in any month shall be &e amount of KW by which the off-peak billing demand exceeds die on-peak billing demand for the month.

The reactive demand in KVARs shall be taken each month as the highest single 15-minute integrated peak in KVARs as registered during the month by a demand meter or indicator, or, at the Company's option, as the highest registration of B thermal type demand meter or indicator.

For the purpose of rbis provision, the on-peak billing period is defined as 7:OO A.M. to 900 P.M., Monday through Friday. The off-peak billing period is defined is 9:OO P.M. to 7:OO A.M. €or all weekdays and all hours of Saturday and Sunday,

TERN OF CONTRACT.

Contracts under this tariff will be m d e for an initial period of not less than two years and shall remain in effect thereafter until either party shall give at least 12 m o n W written notice to the other of the intention to terminate the contnct The Company reserves the right to require initial contracts for periods greater than two years.

A new initial contract period will not be required for e&ing customers who change their contract requirements after the original initial period unless new or additional kcicilities are required.

(Cont'd on Sheet No. 10-3)

DATE OF ISSUE March 20,2006 DATE EFFECTIVE Service rendered on and after March 30.2006

DIRECTOR OF REGULATORY SERVICES FRANKFORT. KENTUCKY NAME TITLE ADDRESS

lssucd by autlioritv of an Order of the Public Service Commission in Case No, 2005-00341 dated March 14.2006

Administrative Case No. 2007-00477 Page Item 21 No. of 23 24

KENTUCKY POWER COMPANY Orieinal Sheet No. Ic)-3 Sheet No. 10-3 Canceling


I TARIFF Q.P. (Cont'd) (Quantity Power)

CONTRACT CAPAClTY

The Customer shall set forth the amount of capacity contracted for ("the contract capacity-) in an amount equal to or greater than 1,000 KW but less than 7,500 KW; in mukipties of IO0 KW. The Company is not required Lo supply capacity in excess of such contract capacity except with express writjen consent of the Company.

SPECIAL TERMS AND CONDITlONS.

This tariff is subject to the Company's Terms and Conditions of Service.

This tariff is available For resale service to mining and industrial Custoiner who furnish service to Customer-owned wnps or villages where living quarks are rented to employees and where the Customer purchases power at a single point for both the power and camp requirements

This tariff is also available to Customer having other sources of energy supply, but who desire to purchase standby or back-up electric s service.from the Company. Where such tonditions exist the Customer shall contract for the maximum m o u n t of demand in KW which the Company might be required to furnish, but not less than 1,000 KW nor more than 7.500 KW. The Company shall not be obligated to supply demands in excess of that contracted capacity. Where service is supplied under the provisions of this paragraph, tlre billing demand each month shall be the highest determined for the cutrent and previous two billing periods, and the minimum charge shall be as set forth under paragraph ""Minimum Charge" above.

A Customer's plant is considered as one or more buildings, which are served by a single electrical distribution system provided and opented by the Customet. When the size of the Customer's Joad necessitates the delivery of eneru to the Customer's plant over more than one circuif the Company may elect to connect its circuits to different points on the Customer's system irrespective of contrary provisions in Terms and Conditions of Service.

Customer with PURPA Section 210 qualifying cogeneration and/or small power production facilities shall take service under Tariff COGEWSPP II or by special agreement with the Company.

DATE OF ISSUE March 20.2006 DATE EFFECTIVE Service rendered on and after March 30.2006

DIRECTOR REGULATORY SERVICES FRANKFORT. KENTUCKY ISSUED BY C K ' W V E.K. WAC%

NAME TITLE ADDRESS

Issued bv authoritv of an Ordw of the PubIic Service Coinmission in Case No. 200500343 dated March 14,2006

Administrative Case No. 2DD7-DD477 Item No. 23

Page 22 of 24

KENTUCKY POWER COMPANY Original Sheet No. Canceling Sheet No. 11-1

P.S.C. ELECTRIC NO. 8 -- TARIFF CIS. - T.0.D.

(Commercial and Litdustrisl Power - Time-of-Day)

AVAILABILITY OF SERVlCL

Available for commercial and indislrial KWHs with nonnd maximum demands of7,500 KW and above. KWHs shall conlnct For a definite anioirnt oFelectricnl capacity in kilowatts which shall be sufficient to meet normal mauimum requiremen& but in no case shall the capecity contracted for be less rlian 7,500 KW.

RATE.

Tariff Code Service Charge per Monlh Demnnd Charge per KW

On-peak

Energy Chiuge per KWH 0s-pcak

370 S 276.M

Service Volta-e

Subt&smission Transmission 371 372

$662.00 S 1,353.00

$13.79 $10.83 $3.68 S; 098 1.6855 1 ..660$

$9.35 $0.84 1.6405

Reactive Demand Charge for each kiiovar of maximum leading or lagging madive demand in excess of SO percent of the KW of monthly metered demand I“.. S D.6Y KVAR

For the purpose of this tari$ the on-peak billing period is defined as 7:DO A M io 9:OO PM for a11 weekdays, Monday through Friday. The off-peek bMhg period is defined 8 9:OO PM to 7:DD AM for all weekdays and all hours of Salurday and Surtday.

MWIMUM DEMAND CHARGE.

l’be miniinuni demand chwg shall be equnl to the minimum billing demnnd times the following minimum demand ram:

Subtmnsmission Transmission $14.79KW SI1.80fKW s i 0 . 3 2 ~ ~

The minimuni demand shall be Le greater of 60% of the contnet capacity set forth on the contract for eleclric service or 60% of Uie highest billing demand. on-peak or off-pzak, rccorded during lhe previous eleven monlhs.

MINliMLIM CHARGE.

This tariFis subjeci LO a minimum charge equal lo the Service Charge plus the Mininmn Demand Charge.

FUEL ADJUSTMENT CLAUSE.

Bills computed according to the rnles set forth herein will be increased or decreiied by a Fuel Adjustment Factor per KWH calculated in compliance wilh the Fuel Adjustment Clause contained in Sheet Nos. 5-1 and 5-2 ofthis Tari5Schedule.


Bills computed anording to the rates sei forth herein will be increased or decreased by a System Sales Factor per KWH calculated in compliance with the System Sales Clnuse conhinad in Sheet Nos. 19-1 and Is2 of Uiislariff Schedule.

E. Bills computed according Lo Uie rates set forth lierein will be increased or by a Demand-Side Management Adjustment Clause Factor per KWH calcalated in compliance with the Demand-Side Matagenrent Adjustment Clause contained in Sheet Nor 22-1 and 22-Z of his Tariff Schednle, unless the KWH is an industrial who has elected to opl-mt in nccordance with the terms pimuant to the Conmiission’s Order in Case No. 95-427.

(Cont’d. On Sheet No. 1 1-2)

DATE OF ISSUE March 20,2006 DATE EFFECTNE Service rendered on and after March 30 2006

ELSUEDBY 6 M w w D I R E C T O R E.K.WAG ER OF REGULATORY SERVICES FRANKFORT KENTUCKY NAME TITLE ADDRESS

Issued by authority of an Order of the Public Service Commission in Cnse No. 2005- 000341 dated March 14.2006


Page 23 of 24

KENTUCKY POWER COMPANY Original Slieet No. 11-2 CanceIing Sheet No. J-@


TARIFF C1.P. - T.O.D. (Cont'd.) (Commercial and Industrinl Power - Time-of-Day)


Bills computed acwnihig to the rates set forth herein will be increased or decreased by an Environmental Surcharge adjustment based on il percent of revenue in compliance with the Environmental Surcharge contained in Sheet Nos. 29-1 through 29-5 of this TaritT Schedule

NET MERGER SAVZNGS CREDIT.

Bills computed according to the tat= set forth herein will be decresed by aNet Merger Savings Credit Factor per KWN calculated in compliance with the Net Merger Savings Credit contained in Sheet No. 23-1 of this Tariff Schedule.

CAPACITY CHARGE.

Bills computed according to the rates set forth herein will be increased by a Capacity Charge Factor per KWH calculated in conipliance with the Capacity ChargeTariicontained in Sheet No. 28-1 of this Tariff Schedule.


Tliis tariff is net if account is paid in full within 15 days of date of bill. On all accounts not SO paid, an additional charge of 5% of the unpaid balance will be made.

METERED VOLTAGE.

The i n k s set forth in this tariff are based upon the detivety and measurement of energy al the same voltage. thus measurement will be made at or compensated to the delivery voltage. At the sole discretion of the Company, such compensation may be nchieved through the use of.loss compensating equipment, the use of formulas to calculate losses or the application of multipliers to the metered quantities. ln such cases, the metered KWH and KVA values will be adjusted for biIling purposes. If the Company elects to adjust KWH and KW based on ~nultipliers, the adjustment shall be in accordance with the following:

( I ) (2)

Measurements taken at the low-side of a customer-owned transformer will be multipfied by 1.01. Measureinents taken at the high-side ofa Company-owned transforiner will be multiplied by 0.9%


The monthly on-peak and off-peak billing demands in KW shall be taken each month as the highest single 1 5-minute integrated peak i i i KW as registered by a demand metm during the on-peak and off-peak billing periods, respectively.

The reactive demand in KVARs shall be taken each month BS the highest single IS-minute iritegated peak in KVAR's ~LS registered during the month by the demand meter or indicotor, or, at the Company's option, as the highest registration of a thermal type demand nieter or indicator.

(Cont'd on Sheet 11-3)

DATE EFFECTIVE Service rendered on and after March 30.2006

DIRECTOR OF REGULATORY SERVICES FRANKFORT. KENTUCKY NAME TITLE ADDRESS

!ssued Irv authority of an Order of the Public Service Commission in CRse No. 2005-00341 dated March 14. 2006


Page 24 of 24

KENTUCKY POWER COMPANY Original Sheet No. 11-3 Canceling Sheet No. 11-3


TARIFF C.I.P. - T.O.D. (Cont’d) (Commercial and Industrial Power - Time-of-Day)

TERM OF CONTRACT.

Contncts under this tariff will be made for an initial period of not less than two ym’s and shall remain in effect thereafter until either party shall give at least 12 months‘ written notice to the other of the intention to terminate the contract The Company reserves the right to require initial contncts for periods greater than hvo years.

A new initial conbact period will not be required for existing customers who change their contract requirements after the ori$nal initjal period unless new or additional fnciiities are required.

CONTUCT CAPACITY.

The Customer shall set forth the mount of capacity contracted for (the “contract capacity”) in an amount equal to or greater than 7,500 KW, in multiples of 100KW. The Company is not required to suppty capacity in excess of such contract capacity except with express written consent of the Company.


This tariff is subject to the Company’s Terms and Conditions of Service.

Tliis tariff is also avnilable to customers having other sources of energy supply, but who desire to purchase standby or back-up electric service froin the Company. Where such conditions exist the customer shall contract for the maximum amount of demand in KW which tile Coinpany might be required to furnish, but not less than 7,500 KW. The Company shall not be obligated to supply demands in excess of the contract for capacily. Where service is supplied under the provisions of this paragraph, the billing demand each month shall be the highest determined for the current nnd previous two billing periods, and the minimum charge shall be as set forth under paragraph “Minimum Charge” above.

A customer’s plant is considered as one or more building, which are served by a single efeftrical distribution system provided and operated by customer. When the size of the customer’s load necessitates the delivery of energy to the customer’s plant over more than one circuiC, the Company may elect to connect its circuits to different points on the” customer’s system irrespective of contrary provisions in Terms and Conditions oFService.

This tariff is available for resale service 1.0 inining and industrial customers who furnish service to customer-owned cantps or villages where living quarters are rented to employees and where the customer purchases power at a single point For both his power and camp

requirements.

Custotners with PURPA Section 2 10 qualifying cogeneration and/or small power production facilities shall take service tinder Tariff COGENlSPP 11 or by special agreement with the Company.

DATE OF ISSUE March 20, 2006 - DATE EFFECTIVE Service rendered on and afkr March 30.2006

DIRECTOR OF REGULATORY FRANKFORT. KENTUCKY NAME TITLE A.DDRESS

Issued hv authority of an Order of the Public Service Commission in Case heOO5-00341 dated March 14.2006





REQUEST

Provide ai analysis for the last 3 years of Environmental Compliance Surcliarge Activity (by year) - Detail o f costs deferred for collection; customer collections under the surcharge; annual balances; etc.

RESPONSE

Below is a table of environmental surcharge revenues collected by year. Additional montldy environmental surcharge information is on file with the Commission.

Environmental Surcharge

Year Revenues Collected Collected

2005 $17,259,970

2006 $7,359,8 14

2007 $3,325,409

Total $27,945,193






REQUEST

Provide an analysis for the last 3 years of DSM surcharge (as provided by 278.285) activity (by year) -- Detail of costs deferred (by program, if available) for collection; customer collections under the surcharge; annual balances; etc.

RESPONSE

Please see Page 2 of this response for three year (Year 2005,2006 & 2007) DSM surcharge activity.



Under / (Over) Collection

Total Program Costs

Total Lost Revenues

Kentucky Power Company 3 Year Analysis of DSM Surcharge Activity

From Year 2005 To Year 2007

2004 2005 2006

Total Efficiency I Maximizing Incentives

Transfer Portion of Balance from Commercial Sector

Total DSM Costs

Total Revenue Collected

Under 1 (Over) Collection

$1 68,816 $2 1 8,850

$609,695 $684,151

$152,620 $1 85,470

$66,638 $82,662

$9,487 $0

$838,440 $952,283

$788,406 $994,771


2007

$1 76,362

$829,542

$205,534

$88,932

$0

$1 , I 24,008

$1,097,661

$168,816 $218,850 $176,362 $202,709

KSSC Administrative Case No. 2007-00477 An Investigation of the Energy and Regulatory Issues in Section 50 of KY’s 2007 Energy Act

Commission Staff’s Second Set of Data Requests Order Dated January 3,2008



REQUEST

In the Discovery response, Item 1 1, at page 1 1, the document references an “Appendix G”. However, Appendix G was not attached. Please provide a copy of tlGs document.

RESPONSE

Please see Page 2 of this response for Appendix G.


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KPSC Administrative Case No. 2007-00477 An Investigation of the Energy and Regulatory Issues in Section 50 of KY’s 2007 Energy Act

Commission Staff’s Second Set of Data Requests Order Dated January 3,2008



REQUEST

Referring to Discovery response, Item 1 1 at page 12, the document references the theoretical market potential for DShUEE programs in the AEP East market area. Please provide the MW arid MWh potential far KPCo only; also the ‘‘Naturally Occurring” MW and MWH at page 14; arid finally the “Informational Campaign” effects at page 15. If these breakouts are not directly available, please provide an estimate based on management judgment in allocating fioin these numbers. Similarly, please provide a KPCo breakout of the data contained at pages 20 and 2 1.

RESPONSE

While the theoretical numbers were developed for the AEP-East system, these are prorated for Kentucky on the bases of MWh and MWs, respectively. Kentucky Power has the only ccu-rent energy efficiency programs in the AEP-East System (thus 100% of the Current DSM - Energy). Virtually all of the demand savings represented in the RP as ”current DSM” is interuptible contracts with industrial customers.

These numbers should not be represented as anything but proration of a theoretically derived planning assumption. There are no (incremental) programs in place for Kenhdcy or the system.




Cumulative Energy AEP-East (Kentucky Power Only) (MWh) 2010 201 5 2020

Total Potential 388,551 388,551 388,551

Naturally Occuring 87,596 87,596 87,596

Informational Campaign 29,169 29,169 29,169

Current DSM 3,824 3,824 3,824

Incremental Utility-Sponsored DSM 874 4,534 1 1,470

Cumulative Demand AEP-East (Kentucky Power Only) (MW)

Total Potential

201 0 201 5 2020

136 I36 136

Naturally Occuring 18 18 18

Informational Campaign 6 6 6

Current DSM 0.1 0.1 0.1

Incremental Utility Sponsored DSM 0 4 16






REQUEST

Referring to Discovery response, Item 1 1, at pages 17-1 8, AEP provides a discussion of the potential impact of incentives, and assumes an optimal participation score of 3.0. Please provide an analysis of the incremental DSM/EE programs and related impacts that would occur based on this criterion for KPCo for the planning period 2007 to 201 0.

RESPONSE

No analysis is available on the effects on current programs of targeting a participation score of 3.0.






REQUEST

Based on the December 17 interview, it is our understanding that KPCo does not currently have a “Green Energy” tariff in Kentucky, but that it will be submitting such a tariff for approval in the near future. Please provide information, including a summary of the program; the status of this filing; and a drafi tariff; if currently available. What is the expected premium over the current standard service offering?

RESPONSE

The Company has not yet determined the specific elements of its “Green Energy” tariff offering in Kentucky. It is anticipated that the Company will offer a program under which customers may voluntarily choose to support renewable energy sources through the purchase of “green” blocks at a price premium above their normal energy costs. It is anticipated that customer’s voluntary contributions will be used to pay a11 costs of the program and be held as a regulatory liability until used to purchase Renewable Energy Credits (RECs). Based on the ‘‘green“ offerings of other utilities, it is expected that the premium over the current standard service offering could be up to $2.50 per 100 kWh.






REQUEST

On a 3 year historic calendar year basis; by year (2004-2006):

Actual and weather adjusted sales by residential, commercial, industrial, other retail and wholesale. Provide a total.

Actual and weather adjusted retail peak demand by residential, commercial, industrial, other retail and wholesale. Provide a total.

Year-end customers by residential, commercial, industrial, other retail and wholesale. Provide a total.

RESPONSE

The requested information is attached. Actual and weather adjusted peak demands are not available by sector.



Kentucky Power Company Energy (GWh) by Sector

Other Sale-For- Year Residential Commerical Industrial Retail Resale Total

2004 2,411 1,373 3,181 I 1 95 7,072 2005 2 , 534 1,423 3,343 10 98 7,407 2006 2,409 1,392 3,311 I O 97 7,220


Kentucky Power Company Weather Normal Energy (GWh) by Sector


2004 2,447 1,381 3,181 11 96 7,116 2005 2,494 1,404 3,343 10 96 7,348 2006 2,509 I ,418 3,311 10 98 7,346

Administrative Case No. 2007-00477 item No. 30 Page 4 of 5

Kentucky Power Company Actual and Weather Normal Seasonal Peak Demands (MW)

Weather Weather Summer Actual Normal Winter Actual Normal

2004 1,228 1,291 2003104 1,478 1,566 200s 1,358 1,285 2004105 1,685 1,590 2006 1,388 1,335 2005106 1,665 1,635


Kentucky Power Company Customers by Sector


2004 144,623 28,491 1,456 442 3 175,015 2005 1 44,64 1 29,063 1,454 382 3 175,543 2006 144,554 29,355 1,461 380 3 175,753

KPSC Administrative Case No. 2007-00477 An Investigation of the Energy and Regulatory Issues in Section 50 of ICY'S 2007 Energy Act



Kentucb Power Company

REQUEST

Provide a listing of current generation sources: generation plant, by unit indicating date of commercial operation, fuel type, and capacity. Identify any generating facilities that are currently under construction, and provide a brief description of such facilities. Please provide this information for both KPCo and AEP.

€tESPONSE

Please see the attached page. The incomplete Dresden natural gas-fired, combined cycle generating facility in Ohio was purchased by AEP in 2007. Commercial operation is anticipated in 2009 or 2010. Its nominal rating is 540MW. It is not expected to be a KPCo facility.

WITNESS: Errol I< Wagner and Timothy C Mosher


PLANT John E. Amos W. C. Beckjord Big Sandy Cardinal Ceredo (Natural Gas) Clinch River Conesville Conesville Cook Nuclear Darby (Natural Gas) Gen. J. M. Gavin Glen Lyn Kammer Kanawha River Lawrenceburg (Natural Gas) Mitchell Mountaineer Muskingum River Picway Rockport Smith Mtn. (Pumped Storage) Spom J. M. Stuart J. M. Stuart (Diesel) Tanners Creek Waterford (Natural Gas) W. H. Zimmer Conventional Hydro

AEP SYSTEM - EAST ZONE AND KENTUCKY POWER COMPANY

GENERATING CAPACITY IN SERVICE (A)

CAPABILIN-MW AEP SYSTEM KPCo

UNITS NOTES Winter (B) Summer (C) Winter (B) Summer (C) InServiceYear 1-3 6

1-2 1

1-6 1-3

3,5-6 4

1-2 1-6 1-2 5-6 1-3 1-2 1-6 1-2 1

1-5 5

1-2 1-5 1-5 1-4 1-4 1-4 1-4 1

Total

2,900 P) 52

1,060 600 523 705 91 5

2,191 507

2,630 335 630 400

1,146 1,560 1,320 1,425

100 (E) 2,620

585 1,050

(D) 606 (D) 3

995 850

(D) 330 182

26.559

(D) 339

(F)

2,900 52

1,060 575 450 690 91 5 339

2,089 438

2,585 325 600 400

1,080 I ,560 1,300 1,375

95 2,600

585 1,020

602 3

990 810 330 284

26,051

1,060

393

1,453

1,060 - -

390

1,450

1971,1972,1973 1969

1963,1969 1967 2001

1958, 1958,1961 1962,1976,1978

1973 1975,1978

2002 1974,1975 1944,1957

1958,1958,1959 1953 2004 1971 1980

1953, '54, '57, '58, '68 1955

1984,1989 1965, '65, '80, '66, '66 1950, '50, '51, '52, '60

1971 , '70, '72, '74 1969

1951, '52, '54, '64 2003 1991

191 2-1 996

NOTES: A. Except where stated otherwise, all units are coal fired. 8. As of Winter 2007/08. C. AEPlKPCo System plant capabilities based on PJM planning year 2007/08. D. Capability shown reflects CSPs share of unit owned jointly with CG&E and DP&L. E. Capacity listed for the AEP System for Rockport excludes the effect of unit power sale to CP&L. F. The winter hydro rating represents the actual winter performance, while the summer hydro rating represents nameplate.

KPSC Administrative Case No. 2007-00477 An Investigation of the Energy and Regulatory Issues in Section 50 of T N ' s 2007 Energy Act



Kentucky Power Campany

REQUEST

For the forecast period 2007-2020 (or a similar period most readily available), provide by year:

Expected generation capacity additions and retirements (by year), indicating type of unit, fuel type, and capacity.

Estimate of any generation sources (by year) from distributed generation, cogeneration, or other iion-utility sources.

Estimated cumulative annual effect of new DSM programs on sales and peak demand.

Average annual estimated growth rate for: Total retail customers; sales; and peak demand. Residential; total retail usage per customer Total retail number of customers Inflation rate Residential, Industrial, and total retail energy cost per kWh

RESPONSE

For expected capacity additions and retirements, see Page 2 of this response.

There is no estimate of generation sources from any non-utility sources.

For the estimated annual effect of new DSM programs on sales and peak demand please see the response to Item No. 27.

For estimated annual growth rates for the items requested above see Page 3 of this response.


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Administrative Case 2007-00477 Item No. 32 Page 3 of 3

Spring 2007 IRP

Capacity (MW) AEP System-East Zone KPCo Capacity Capacity Capacity

- Year Number and Type of Units Added Fuel TvDe

2008 75MW Wind 2009 Dresden CC

200MW Wind 201 0 300MW Wind 201 I 285MW Wind 2012

2013 2014 no additions 2015 2-Combined Cycle (CC)

10 MW NaS Batteries 201 6 1 -Combined Cycle (CC)

50MW Wind 15MW NaS Batteries

I -Integrated Gasification Combined Cycle (IGCC) IOMW NaS Batteries

6-Simple Cycle Combustion Turbines (CT)

2017 I -IGCC

201 8 1 -cc 6-CTs

50MW Wind

50MW Wind 20MW NaS Batteries

2020 50MW Wind

201 9 I -1GCC

Wind Natural Gas

Wind Wind Wind Coal

Natural Gas

Natural Gas

Natural Gas Coal Wind

Natural Gas

Wind Coal Wind

Wind

-- Additions (A)

75 540 40 60 57 622 10

486

1,018 I O

509 622 10 15

509 486 10

622 20 20 10

Retired CB) Additions (Cy

605

709 1

1,275 1

509

1 1,315

31 1

1

Notes: A) The capacity value of wind is expected to be initially 20% of nameplate. B) All retired capacity is coal fired. Timing of retirements may depend on unit conditions through time. C) The allocation of capacity to KPCo has been determined to balance the pool for planning purposes only.


Commission Staff‘s Second Set of Data Requests Order Dated January 3,2008



REQUEST

Provide statistics maintained on energy and demand impacts of any customers (if any) on net metering tariff. Indicate the technology employed, summarize the basic costs of interconnection and maintenance (e.g., connection charges, costs of backup power), describe any transmission issues of note, etc.

RESPONSE

The Company does not currently have any customers served under its Net Metering Service tariff. Typically, the Company’s non-refimdable Interconnection Application fee of $50 would cover the cost of interconnection for a Net Metering Service customer. In addition, the customer is responsible for a11 expenses for the purchase and installation of any necessary metering and must provide a visibly open, lockable, manual disconnect switch, which is accessible by the Company. Net Metering Service customers are not subject to any additional costs from the Company for backup power.






REQUEST

Identify and describe what resources are currently committed to energy planning and energy conservation activities? This response should include both operating company personnel, as well as AEP. For AEP staff, provide an estimate of percent of time spent on KPCo activities.

Full time employees - department, title, brief job descriptions. Educational programs re energy conservation; programs available. IRP process. Screening and administration of DSM programs. Other

RESPONSE

The Resource Planning department at the AEP Service Corporation consists of a Managing Director, a Director of Resource and DSM Planning, and a Director of Integrated Resource Planning. Reporting to the Director of Integrated Resource Planning are 13 Resource Planning professionals including managers of Resource Planning, Resource Planning Modeling, and Production Resource Modeling. These resource planning professionals spend about 50% of their time collecting and analyzing generation and system load data, performing optimization and production cost modeling, and compiling results that becomes the basis for the AEP East and AEP West zone integrated resource plans. For the AEP East zone, this work is performed on an integrated basis for the AEP East Zone companies, of which KPCo is one. Staff time is not tracked to specific companies, however being that Kentucky Power's generation portfolio represents less than 5% of the AEP System generation portfolio, staff time spent developing an IRP that wouId be allocable to KPCo would be Iess than 1 FTE.

In addition to the Resource Planning department, numerous AEP Service Corporation departments contribute information that is used as input for the resource planiiing function. This information may typically be collected as part of the broader function of each department, independent of the resource planning process. Therefore the portion of time these contributing departments devote to solely supporting an IRP process is de minimus.




AEP operating companies in 3 jurisdictions currently offer DSM/EE programs. The administration of KPCo programs is managed by one full time employee who spends 100% percent of his time on DSMEE activities. and Public Policy and 3 in Distribution and Customer Services who spend some portion of their time addressing D S W E matters acrass all of AEP operating companies. Since KPCo has established programs, very little time, if any, of these 6 E P S C employees is spent on JCPCo activities.

In addition, there are 3 individuals in Regulatory


KPSC Administrative Case No. 2007-00477 An Investigation of the Energy and Regulatory Issues in Section 50 of KN’s 2007 Energy Act




REQUEST

Does the Company currently provide programs for Energy Assistance Funding? If so, provide program details.

Does the company currently have any low-income or lifeline rates in place? If SO,

provide a copy of relevant tariffs or tariff provisions. Also indicate If the company provides direct support to its low-income customers. Provide amounts associated with these programs/tariffs, by year, for the three years ending December 3 1 , 2006.

RESPONSE

The Company does currently have a Home Energy Assistance Program (HEA Program), which does provide energy assistance funding for the low-income customers. Details o f the HEA Program are attached.

The Company does not currently have any low-income or lifeline rates in place. With the Commission’s approval of the HEA Program on March 14,2006, KPCo provided direct support to its low-income customers in the amount of $122,652 during the 9 months ending December 3 1 , 2006. The customers provided a like amount during the same time period. Nothing was provided by either the Company or the customers during the calendar years 2004 and 2005.


Administrative Case No. 2057-55477 item No. 35

Page 2 of 56

In The Matter Of:

COMMONWEALTH OF RENTUCKY

AUG 0 3 2006 BEFORE THE PUIBLIC SERVICE CONMISSION

PUBL1C SERVICE COMMISSION

JOINT APPLICATION OF KENTUCKY POWER 1 COMPANY AND KENTUCKY ASSOCIATION FOR ) COMMUNITY ACTION, TNC. FOR TWE ESTABLISHMENT OF A HOME ENERGY 1 ASSISTANCE PROGRAM )

) CASE NO. 2006-

30INT APPLICATION

Kentucky Powqr Company (Xentucky Power” or ‘?aPco’’) and Kentucky Association

for Community Action, Tnc. (“‘KACA”) (collectively “Joint Applicants”) petition the Public

Service Commission of Kentucky (the ‘Tommission”) pursuant to the Commission’s Order

dated March 14,2006 in P.S.C. Case No. 2005-000341, In theMatter o$ A General Adjustment

In The Rates of Kentucky Power Company and KRS 278.285(2) and (4) for an order approving

the programmatic details of a new Home Energy Assistance (“HEA“) Program in Kentucky

Power’s service territory and recovery of start-up costs through Kentucky Power’s demand side

management mechanism.

In support of this AppIication, Joint AppIicants state as follows:

Introduction

1. Kentucky Power’s post office address is l OlA Enterprise Drive, P.O. Box 5190,

Frarikfort, Kentucky 40602-5 190. A certified copy of Kentucky Power’s Articles of

Incorporation were filed with the Commission in Joint Application of KentueQ Power Co.,

American Electric Power Co., Ine. and Central md S w h Wesf Corporation Regarding a

\

1


Page 3 of 56

Proposed Merger, Case No. 99-149, as Exhibit “1” and is incorporated by reference herein

pursuant to 807 KAR 5:00l, Section 8(3).

2. KACA’s post office address is 101 Burch Court, Frankfort, Kentucky 40601. A

certified copy of KACA’s Articles of Incorporation was filed with the Commission in Case

No. 2004-00303, in me Matter OJ Joint AppZication of Kentucky Utilities Company, Kentucky

Association for Community Action, Inc, and Communi@ Action Council for Laing ton-Fayette,

Bourbon, Harrison and Nicholas Counties, Inc. for the Establishment of a Home Energy

Assistance Program, and is incorporated by reference herein pursuant to 807 KA.R 5:001,

Section 8(3).

3. Coxnmunkations regarding this Appljcation should be addressed to:

Kentucky Power: Mark R. Overstreet Stites & Harbison, PLW 421 West Main Street P.O. Box 634 Frankfort, Kentucky 40602-0634 Telephone: 502-223-3477

Errol K Wagner Kentucky Power Company 1OlA Enterprise Drive P.O. Box 5190 FranHort, Kentucky 40602-5 190 Telephone: 502-696-701 0

KACA. Joe F. C h i l b Suite 310 201 West Short Street Lexington, Kentucky 40507 Telephone: 606-253-9824

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