Kentucky Power Information Request - Decommissioning Rider and Purchase Power Adjustment

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

COMMISSION STAFF'S THIRD 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 28, 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 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

Case No. 2020-00085, Electronic Emergency Docket Related to the Novel Coronavirus COVID-1

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 ELECTRONIC TARIFF FILING OF KENTUCKY ) 5:001, Section 8).

POWER COMPANY TO UPDATE ITS ) CASE NO. PURCHASE POWER ADJUSTMENT AND ) 2025-00307 DECOMMISSIONING RIDER RATES AND ITS ) SECURITIZED SURCHARGE RIDER )

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. Provide an estimate of the costs which Kentucky Power intends to recover
   through the Decommissioning Rider for 2026-2030, by year.

2. Refer to Kentucky Power's proposed P.S.C. KY. No. 13 1st Revised Sheet
   No. 33-1. Given the securitization of Big Sandy retirement costs, explain why Kentucky

Power's proposed Decommissioning Rider tariff sheet submitted in this matter still

references:

-2- Case No. 2025-00307

[C]oal-related retirement costs of Big Sandy Unit 1, the retirement costs of Big Sandy Unit 2 and other site-related retirement costs that will not continue in use on a levelized basis, including a weighted average cost of capital (WACC) as set in the Company's most recent rate case carrying cost over a 25 year period beginning with the date rates became effective in Case No. 2014-00396. The term 2

'Retirement Costs' are defined as and shall include the net book

value, materials and supplies that cannot be used economically at other plants owned by Kentucky Power, and removal costs and salvage credits."

1. Provide the estimated cost to Kentucky Power to prepare and process the
   annual Decommissioning Rider update.

2. Refer to Kentucky Power's response to Commission Staff's Second
   Request for Information, Item 1. Confirm that the Purchased Power Adjustment (Tariff P.P.A.) under/over-recovery regulatory asset/liability is calculated differently than the under/over-recovery component of Kentucky Power's Tariff P.P.A. rates. If not confirmed, explain the response.

3. Explain whether Kentucky Power could align the under/over-recovery
   regulatory asset/liability calculation to be the same as the under/over-recovery

component of Kentucky Power's Tariff P.P.A. rates. If not, explain why not. If so, explain

the process for the alignment.

Case No. 2014-00396, Application of Kentucky Power Company for: (1) a General Adjustment of 2

Its Rates for Electric Service; (2) an Order Approving Its 2014 Environmental Compliance Plan; (3) an Order Approving Its Tariffs and Riders; and (4) an Order Granting All Other Required Approvals and Relief (Ky.

PSC June 26, 2015).

-3- Case No. 2025-00307

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

APR 20 2026DATED _____________________

cc: Parties of Record

Case No. 2025-00307

Service List for 2025-00307

• 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