Environmental Surcharge Review for Kentucky Power

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

O R D E R On May 27, 1997, the Commission approved Kentucky Power Company's (Kentucky Power) environmental surcharge application and established a surcharge mechanism. On December 30, 2025, the Commission approved Kentucky Power's most 1 recent environmental compliance plan. Pursuant to KRS 278.183(3), at six-month 2 intervals, the Commission must review the past operations of the environmental surcharge, disallow any surcharge amounts found not to be just and reasonable, and reconcile past surcharges with actual costs recoverable pursuant to KRS 278.183(1). On its own motion, the Commission initiates the six-month review of Kentucky

Power's environmental surcharge for the billing period ending December 31, 2025.

Case No. 1996-00489, Application of Kentucky Power Company d/b/a American Electric Power 1

to Assess a Surcharge Under KRS 278.183 to Recover Costs of Compliance with the Clean Air Act and Those Environmental Requirements Which Apply to Coal Combustion Wastes and By-Products (Ky. PSC

May 27, 1997). Case No. 2025-00175, Electronic Application of Kentucky Power Company for Approval of (1) a 2

Certificate of Public Convenience and Necessity to Make the Capital Investments Necessary to Continue Taking Capacity and Energy from the Mitchell Generating Station After December 31, 2028, (2) an AN ELECTRONIC EXAMINATION BY THE ) Amended Environmental Compliance Plan, (3) Revised Environmental Surcharge Tariff Sheets, and (4) All PUBLIC SERVICE COMMISSION OF THE ) Other Required Approvals and Relief (Ky. PSC Dec. 30, 2025). ENVIRONMENTAL SURCHARGE MECHANISM ) CASE NO.

OF KENTUCKY POWER COMPANY FOR THE ) 2026-00071 SIX-MONTH BILLING PERIOD ENDING ) DECEMBER 31, 2025 )

To facilitate this review, a procedural schedule is set forth in Appendix A to this Order. In accordance with that schedule, Kentucky Power is to file prepared direct testimony in support of the reasonableness of the application of its environmental surcharge mechanism during the periods under review. In addition, Kentucky Power is to file its responses to the information requested in Appendix B to this Order and should respond to any future requests for information propounded by Commission Staff by the date or dates set forth on any such requests. Additionally, any hearing scheduled in this matter shall be held on the designated day or days and continued until called from the bench by the presiding officer. Pursuant to 807 KAR 5:001, Section 2, if the hearing is not concluded on the designated day, the hearing may be continued upon verbal announcement by the presiding officer. A verbal announcement made by the presiding officer shall be proper notice of the continued hearing. Hearings are held at the offices of the Public Service Commission at 211 Sower Boulevard, Frankfort, Kentucky. Witnesses who sponsor schedules, testimony, or responses to requests for information are expected to participate in person at a hearing. IT IS THEREFORE ORDERED that:

1. This proceeding is initiated to review Kentucky Power's environmental
   surcharge for the six-month billing period ending December 31, 2025.

2. The procedural schedule set forth in Appendix A to this Order shall be
   followed.

3. On or before the date set forth in the procedural schedule, Kentucky Power
   shall file its responses to Commission Staff's First Request for Information, attached to this Order as Appendix B.

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1. Kentucky Power shall respond to any additional requests for information
   propounded by Commission Staff, whether identified on the procedural schedule or otherwise, as provided in those requests.

2. Any party filing with the Commission shall file an electronic copy in
   accordance with the electronic filing procedures set forth in 807 KAR 5:001, Section 8. Electronic documents shall be in portable document format (PDF), shall be searchable, and shall be appropriately bookmarked. The Commission directs the parties to the

Commission's July 22, 2021 Order in Case No. 2020-00085 regarding filings with the 3 Commission.

1. As set forth in 807 KAR 5:001, Section 4(11), a person requesting permissive intervention in a Commission proceeding is required to demonstrate either (1) a special interest in the proceeding that is not otherwise adequately represented in the case, or (2) that intervention is likely to present issues or develop facts that will assist the Commission in fully considering the matter without unduly complicating or disrupting the proceedings. Therefore, any person requesting to intervene in a Commission proceeding

must state with specificity the person's special interest that is not otherwise adequately

represented, or the issues and facts that the person will present that will assist the Commission in fully considering the matter. A mere recitation of the quantity of utility service consumed by the movant or a general statement regarding a potential impact of possible modification of rates will not be deemed sufficient to establish a special interest.

Case No. 2020-00085, Electronic Emergency Docket Related to the Novel Coronavirus COVID-3

19 (Ky. PSC July 22, 2021), Order (in which the Commission ordered that for case filings made on and after

March 16, 2020, filers are NOT required to file the original physical copies of the filings required by 807 KAR 5:001, Section 8).

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1. Any motion to intervene filed after the dates established in the procedural
   schedule shall show a basis for intervention and good cause for being untimely. If the untimely motion is granted, the movant shall accept and abide by the existing procedural schedule.

2. A party granted leave to intervene states shall:

3. Be deemed to have consented to the use of electronic filing
   procedures and the service of all papers, including Orders of the Commission, by electronic means; and

4. Within seven days of the date of service of an Order of the
   Commission granting its intervention, file with the Commission a written statement that: (1) It, or its authorized agent, possesses the facilities to receive electronic transmissions; and (2) Sets forth the electronic mail address to which all electronic notices and messages related to this proceeding shall be served.

5. Kentucky Power shall, by the date set forth in Appendix A, file its prepared
   direct testimony in support of the reasonableness of the application of its environmental surcharge mechanism during the periods under review.

6. Within seven days of the Commission's granting intervention to a party,
   Kentucky Power shall provide the party with a copy of its monthly environmental surcharge reports as filed with the Commission for the review periods.

7. Kentucky Power's monthly environmental surcharge reports and supporting
   data for the review periods set forth in this Order shall be incorporated by reference into the record of this case.

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1. The Commission does not look favorably upon motions for continuance.
   Accordingly, motions for extensions of time with respect to the schedule herein shall be made in writing and will be granted only upon a showing of good cause.

2. The Commission does not look favorably upon motions to substitute
   witnesses or excuse witnesses from testifying at Commission hearings. Accordingly, motions to substitute witnesses or excuse a witness from testifying at a Commission hearing or from testifying in person at a Commission hearing shall be made in writing at least 14 days prior to the hearing and will be granted only upon a showing of good cause.

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Entered on this 21st day of April, 2026. PUBLIC SERVICE COMMISSION

___________________________ Angie Hatton Chair

___________________________ Mary Pat Regan Commissioner

___________________________ Andrew W. Wood Commissioner

ATTEST:

______________________ Linda C. Bridwell, PE Executive Director

Case No. 2026-00071

APPENDIX A APPENDIX TO AN ORDER OF THE KENTUCKY PUBLIC SERVICE COMMISSION IN CASE NO. 2026-00071 DATED APR 21 2026

Kentucky Power shall file its prepared direct testimony and responses to the information requested in Appendix B

no later than ........................................................................................................ 05/15/2026

A person interested in becoming a party to this proceeding shall file a motion to intervene with the Commission pursuant

to 807 KAR 5:001, Section 4(11), no later than ................................................. 05/22/2026

All additional requests for information to Kentucky Power shall

be filed no later than ........................................................................................... 06/08/2026

Kentucky Power shall file responses to additional requests for

information no later than..................................................................................... 06/23/2026

Intervenor testimony, if any, in verified prepared form

shall be filed no later than .................................................................................. 07/08/2026

All requests for information to Intervenors shall be

filed no later than ................................................................................................ 07/22/2026

Intervenors shall file responses to requests for

information no later than..................................................................................... 08/08/2026

Last day for Kentucky Power or Intervenors to request a hearing or submit this case

for a decision based on the record..................................................................... 08/19/2026

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APPENDIX B APPENDIX TO AN ORDER OF THE KENTUCKY PUBLIC SERVICE COMMISSION IN CASE NO. 2026-00071 DATED APR 21 2026

COMMISSION STAFF'S FIRST REQUEST FOR INFORMATION

TO KENTUCKY POWER COMPANY Kentucky Power Company (Kentucky Power), pursuant to 807 KAR 5:001, shall file with the Commission an electronic version of the following information. The information requested is due on May 15, 2026. The Commission directs Kentucky Power

to the Commission's July 22, 2021, Order in Case No. 2020-00085 regarding filings with 4 the Commission. Electronic documents shall be in portable document format (PDF), shall be searchable, and shall be appropriately bookmarked. Each response shall include the question to which the response is made and shall include the name of the witness responsible for responding to the questions related to the information provided. Each response shall be answered under oath or, for representatives of a public or private corporation or a partnership or association or a governmental agency, be accompanied by a signed certification of the preparer or the person supervising the preparation of the response on behalf of the entity that the response is true and accurate to the best of that person's knowledge, information, and belief formed after a reasonable inquiry. Kentucky Power shall make timely amendment to any prior response if Kentucky Power obtains information that indicates the response was incorrect or incomplete when

Case No. 2020-00085, Electronic Emergency Docket Related to the Novel Coronavirus COVID-4

19 (Ky. PSC July 22, 2021), Order (in which the Commission ordered that for case filings made on and after

March 16, 2020, filers are NOT required to file the original physical copies of the filings required by 807 KAR 5:001, Section 8).

Page 1 of 4

made or, though correct or complete when made, is now incorrect or incomplete in any material respect. For any request to which Kentucky Power fails or refuses to furnish all or part of the requested information, Kentucky Power shall provide a written explanation of the specific grounds for its failure to completely and precisely respond. Careful attention shall be given to copied and scanned material to ensure that it is legible. When the requested information has been previously provided in this proceeding in the requested format, reference may be made to the specific location of that information in responding to this request. When applicable, the requested information shall be separately provided for total company operations and jurisdictional operations. When filing a paper containing personal information, Kentucky Power shall, in accordance with 807 KAR 5:001, Section 4(10), encrypt or redact the paper so that personal information cannot be read.

1. Prepare a summary schedule showing the calculation of E(m) and the surcharge factor for the expense months under review. ES Form 1.00 and 1.10 can be used as a model for this summary. Include the two expense months subsequent to the specific review period that is the subject of this proceeding in order to show the over- and under-recovery adjustments for the months included for each of the periods under review. Include a calculation of any additional over- or under-recovery amount Kentucky Power believes needs to be recognized for the six-month review. Provide the schedule and all supporting calculations and documentation in Excel spreadsheet format with all formulas, columns, and rows unprotected and fully accessible.

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1. The net gain or loss from sulfur dioxide and nitrogen oxide emission
   allowance sales is reported on ES Form 3.00, Calculation of Current Period Revenue Requirement, Second Component. For each expense month of the specific period under review, provide an explanation of how the gain or loss reported in the expense month was calculated and describe the transaction(s) that was the source of the gain or loss.

2. Refer to ES Form 3.10, Mitchell Environmental Costs for each of the
   expense months of the specific periods under review. Explain the reason(s) for any change in the expense levels from month to month if that change is greater than plus or minus 10 percent for each of the following operating and maintenance costs listed:

3. Line 22 Monthly Disposal (5010000)

4. Line 24 Monthly Urea Expense (5020002)

5. Line 25 Monthly Trona Expense (5020003)

6. Line 26 Monthly Lime Stone Expense (5020004)

7. Line 27 Monthly Polymer Expense (5020005)

8. Line 28 Monthly Lime Hydrate Expense (5020007)

9. Line 29 Monthly WV Air Emission Fee

10. Line 35 Monthly FGD Maintenance Expense

11. Line 36 Monthly Non-FGD Maintenance Expense

12. Refer to ES Form 3.40 A - D for each expense month covered by the billing
    period under review.

13. For the six-month review period, provide the calculation that supports
    the total cost of allowances consumed that is then carried to ES Form 3.10.

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1. Provide an explanation and the reasons for any fluctuations greater
   than plus or minus 10 percent in the monthly average cost of allowances determined in Item 4.

2. Provide the average residential customer's monthly usage as of December
   31, 2025. Based on this usage amount, provide the dollar impact any over- or under-

recovery will have on the average residential customer's bill for the recovery periods.

Provide the schedule and all supporting calculations and documentation in Excel spreadsheet format with all formulas, columns, and rows unprotected and fully accessible.

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Service List for 2026-00071

• Harlee P. Havens Stites & Harbison 250 West Main Street, Suite 2300 Lexington, KY 40507
• Kentucky Power Company 1645 Winchester Avenue Ashland, KY 41101
• Kenneth J Gish, Jr. Stites & Harbison 250 West Main Street, Suite 2300 Lexington, KY 40507
• Katie M Glass Stites & Harbison 421 West Main Street P. O. Box 634 Frankfort, KY 40602-0634
• Denotes served by Email