Kentucky PSC provides pre-approval for emergency equipment transfers between utilities

The Kentucky Public Service Commission (PSC) recently agreed to pre-approve emergency transfers of large electric transmission system transformers for four Kentucky utilities.

The pre-approval allows Kentucky Utilities Co. (KU), Louisville Gas & Electric Co. (LG&E), Duke Energy Kentucky, and East Kentucky Power Cooperative to transfer equipment with a value of more than $1 million in emergency situation in accordance with in connection with the Regional Equipment Sharing for Transmission Outage Restoration (RESTORE) agreement.

The RESTORE agreement is designed to give participating utilities the ability to quickly obtain the equipment necessary to complete repairs in the event of an outage or other similar incident.

State law currently requires PSC approval of equipment sales or purchases exceeding $1 million. Large transformers also need to be ordered far in advance. Because of this, the RESTORE agreement and the pre-approval would give them “access to spare infrastructure necessary to restore the transmission grid in a timely manner following disruption caused by a catastrophic event,” the utilities said in their application.

The approval also includes the purchase of spare or replacement transformers if a participating utility in Kentucky provides equipment to another utility through the RESTORE agreement.

The order also requires utilities to report any transactions or acquisitions made under the agreement within 30 days.