Kentucky Power storm expense accounting deferral request

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

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 April 15, 2026. The Commission directs Kentucky Power to the Commission’s July 22, 2021 Order in Case No. 2020-00085 regarding filings with 1 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

ELECTRONIC APPLICATION OF KENTUCKY )

Case No. 2020-00085, Electronic Emergency Docket Related to the Novel Coronavirus COVID-POWER COMPANY FOR AN ORDER ) 1

19 (Ky. PSC July 22, 2021), Order (in which the Commission ordered that for case filings made on and after APPROVING ACCOUNTING PRACTICES TO ) March 16, 2020, filers are NOT required to file the original physical copies of the filings required by 807 KAR ESTABLISH A REGULATORY ASSET RELATED ) CASE NO. 5:001, Section 8).

TO THE EXTRAORDINARY EXPENSES ) 2026-00067 INCURRED BY KENTUCKY POWER COMPANY ) IN CONNECTION WITH THE DECEMBER 2025 ) MAJOR STORM EVENT )

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 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. Refer to the Application, Exhibit 2. Provide a fully itemized breakdown, in Excel spreadsheet format with all formulas, columns, and rows unprotected and fully accessible, reflecting the estimated jurisdictional incremental O&M costs associated with the December 18–19, 2025 Major Event storm. The response should include at minimum:

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1. Labor (regular and overtime, separately stated);
2. Contract costs by vendor;
3. Materials and supplies by category; and
4. Any overhead allocations.

5. Refer to the Application, paragraphs 11–12. Explain, in detail, the
   methodology used to determine incremental O&M costs, including:

6. How costs embedded in base rates were excluded.

7. Any allocation factors applied.

8. All assumptions used in developing the incremental cost estimate.

9. Refer to the Application and Exhibit 2. Provide a reconciliation between the
   following items:

10. Total storm costs;

11. Capitalized costs;

12. Incremental O&M costs; and

13. Any other excluded or deferred amounts.

14. Refer to the Application, paragraph 25. Confirm whether the reported
    damage (including transformers, cross arms, poles, and conductor spans) represents final or preliminary figures. If preliminary, consider this an ongoing request to provide the updated totals throughout the pendency of this case.

15. Refer to the Application, paragraphs 39–40.

16. Provide the amount of storm damage expense that Kentucky Power
    is authorized to embed in base rates.

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1. Confirm that Kentucky Power exhausted the amount of storm
   damage expense embedded in base rates prior to the time the December 18–19, 2025 Major Storm Event occurred. If not confirmed, provide the remaining amount.

2. Refer to the Application, paragraph 41. Provide the expected timeline for
   when the actual storm-related costs will be finalized and filed with the Commission.

3. Refer to the Application, paragraph 41. Explain the process used to develop
   the preliminary cost estimates, including what costs were known versus estimated at the time of filing, any contingency factors applied, and expected margin of error.

4. State whether Kentucky Power expects to receive insurance proceeds,
   FEMA assistance, or other federal/state funding related to the December 2025 storm. If so:

5. Provide estimated amounts; and

6. Explain how such amounts will be reflected in the requested deferral.

7. Explain any new efforts Kentucky Power is taking to harden its distribution
   and transmission systems against future storms. Provide any documentation demonstrating these efforts.

8. Refer to Application, page 7, paragraph 24. Explain how Kentucky Power
   chooses the “contract employees” to participate in storm damage restoration efforts.

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________________________ Linda C. Bridwell, PE Executive Director Public Service Commission 211 Sower Blvd. Frankfort, KY 40601-8294

APR 01 2026DATED _____________________

cc: Parties of Record

Case No. 2026-00067

Service List for 2026-00067

• 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

• Michael J. Schuler American Electric Power Service Corporation 1 Riverside Plaza, 29th Floor Post Office Box 16631 Columbus, OH 43216

• Denotes served by Email