Citipower Gas Cost Recovery Rate Report Approval

COMMONWEALTH OF KENTUCKY BEFORE THE PUBLIC SERVICE COMMISSION In the Matter of:

O R D E R On February 27, 2026, Citipower, LLC (Citipower) filed its Gas Cost Recovery (GCR) rate report for rates effective as of April 1, 2026. Citipower’s previous GCR rate was approved in Case No. 2025-00382. 1 LEGAL STANDARD

The Commission’s standard of review for GCR rates is well settled as stated in

KRS 278.274(1): In determining whether proposed natural gas utility rates are just and reasonable, the commission shall review the utility's gas purchasing practices. The commission may disallow any costs or rates which are deemed to result from imprudent purchasing practices on the part of the utility. Further, the utility has the burden to prove the rates are just and reasonable and

the Commission may reduce the purchased gas component of the utility’s rates, or the

rates charged by an affiliated company to the extent the amount is deemed to be unjust or unreasonable. 2

Case No. 2025-00382, Electronic Purchased Gas Adjustment Filing of Citipower, LLC (Ky. PSC 1Dec. 19, 2025). KRS 278.274(2); KRS 278.274(3)(c); and KRS 278.274(3)(d). 2

ELECTRONIC PURCHASED GAS ADJUSTMENT ) CASE NO. FILING OF CITIPOWER, LLC ) 2026-00040

DISCUSSION After reviewing the record in this case and being otherwise sufficiently advised, the

Commission finds that Citipower’s report proposes revised rates designed to pass on to

its customers its expected change in gas costs. Citipower’s report sets out an Expected Gas Cost (EGC) of $6.2480 per Mcf, which is a decrease of $0.7932 per Mcf from its previous EGC of $7.0412 per Mcf. The EGC is based on Citipower’s expected cost of gas from its primary supplier, Citigas, LLC (Citigas), a Citipower affiliate pursuant to KRS 278.010(18), using the New York Mercantile Exchange (NYMEX) Natural Gas strip 3 rate for April through June 2026, plus a $1.5000 per Mcf fee for transportation, and a 20 percent markup marketing fee. Citipower’s report sets out no Refund Adjustment.

Citipower’s report sets out a current quarter Actual Cost Adjustment (ACA) of $0.0896

per Mcf. Citipower’s total ACA is $0.2374 per Mcf, which is an increase of $0.0896 from its previous total ACA of $0.1478. Citipower’s application shows that it supplemented its

system supply with purchases from Citizen’s Gas Utility District during the month of

December 2025, which caused its actual cost of gas to be higher than the projected cost of purchases from its affiliate. Citipower’s report sets out a current quarter Balance

Adjustment (BA) of $0.0001 per Mcf. Citipower’s total BA is $0.0003 per Mcf, which is

unchanged from its previous total BA of $0.0003 per Mcf. Based on the calculations above, the Commission finds that Citipower’s GCR rate is $6.4857 per Mcf, which is a decrease of $0.7036 per Mcf from the previous GCR rate of $7.1893 per Mcf, should be approved. The Commission finds that the inputs, resulting

Due to Citigas being a Citipower affiliate, the Commission, pursuant to KRS 278.274(3)(b), shall 3ensure that the rates charged by the affiliate and ultimately to the consumer are just and reasonable and that an arm-length transaction has occurred.

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components and calculation of Citipower’s proposed GCR rate of $6.4857 per Mcf to be reasonable. The Commission further finds that the rates set forth in the Appendix to this Order are fair, just and reasonable and are approved for service rendered by Citipower on and after April 1, 2026. For the purpose of transparency and to maintain a record of information for future use, the Commission finds that Citipower should submit all invoices it receives along with its monthly usage report for each month of the reporting period when it files its future GCR rate reports. Should Citipower purchase sustainable natural gas from a renewable source during the reporting period of any future GCR reports then the supplier, cost, and amount must be documented in its cover letter to the Commission. IT IS THEREFORE ORDERED that:

1. The rates proposed by Citipower are approved.

2. The rates set forth in the Appendix to this Order are approved for service
   rendered on and after April 1, 2026.

3. Citipower shall submit all invoices it receives along with its monthly usage
   reports for each month of the reporting period when it files its future GCR rate reports.

4. Should Citipower purchase sustainable natural gas from a renewable
   source during the reporting period of any future GCR reports, then the supplier, cost, and amount shall be documented in its cover letter to the Commission.

5. Within 20 days of the date of service of this Order, Citipower shall file with
   this Commission, using the Commission’s electronic Tariff Filing System, revised tariff

sheets setting out the rates approved herein and reflecting that they were approved pursuant to this Order.

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1. This case is closed and removed from the Commission’s docket. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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PUBLIC SERVICE COMMISSION ___________________________ Chairman ___________________________ Commissioner ___________________________ Commissioner

ATTEST:

______________________ Executive Director

Case No. 2026-00040

APPENDIX APPENDIX TO AN ORDER OF THE KENTUCKY PUBLIC SERVICE COMMISSION IN CASE NO. 2026-00040 DATED MAR 27 2026 The following rates and charges are prescribed for the customers served by Citipower, LLC. All other rates and charges not specifically mentioned herein shall remain the same as those in effect under the authority of the Commission prior to the effective date of this Order. RESIDENTIAL Gas Cost Recovery Base Rate Rate Total All Mcf $12.3897 $6.4857 $18.8754

COMMERCIAL AND INDUSTRIAL Gas Cost Recovery Base Rate Rate Total All Mcf $12.4688 $6.4857 $18.9545

INSTITUTIONAL Gas Cost Recovery Base Rate Rate Total All Mcf $13.2893 $6.4857 $19.7750

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**CitiPower, L.L.C. 37 Court Street*

1. O. Box 1309

Whitley City, KY 42653

**Adam Forsberg Controller Citipower L.L.C. 2122 Enterprise Road Greensboro, NC 27408*

**Denotes Served by Email Service List for Case 2026-00040*