Kentucky PSC Approves Duke Energy’s Environmental Surcharge Return While New DSM Rate Filing Under Review

Duke Energy Kentucky recently secured regulatory approval from the Kentucky Public Service Commission for its environmental surcharge mechanism, while a separate rate case involving updates to its demand‑side management (DSM) programs has entered a suspended review phase.

PSC Approves Environmental Surcharge Mechanism

On August 21, 2026, the Kentucky Public Service Commission issued its final order approving the amounts billed by Duke Energy Kentucky through its environmental surcharge for the six‑month period ending November 30, 2025. The Commission also established a pre‑tax return of 9.102 percent, effective from the October 2025 expense month. With this order, the case is now closed and removed from the PSC’s docket.

This approval brings clarity to the utility’s cost recovery mechanism, ensuring a regulated return on environmental expenditures while impacting customer billing through the e‑RSA framework.

New Demand‑Side Management Filing Suspended

Meanwhile, Duke Energy Kentucky’s August 14, 2026 filing with the PSC to amend its DSM programs has triggered a new rate review. According to the Commission’s order entered on September 11, 2026, the proposed DSM rates and tariff are now suspended for five months, running from September 14, 2026 through February 14, 2027.

The PSC directed adherence to procedural rules under 807 KAR 5:001, Section 8, and required Duke Energy Kentucky to confirm it will receive commission orders electronically within seven days following service of the order.

Implications for Duke Energy and Customers

The confirmation of the environmental surcharge return offers financial predictability for Duke Energy Kentucky as it transitions into upcoming rate discussions. At the same time, the suspension of the DSM amendment filing delays any potential rate design changes tied to energy efficiency programs.

For investors and rate monitors, the key dates going forward include regulatory proceedings resuming January 2027 for the DSM matter, which may signal future rate adjustments depending on the outcome.

Next Steps and Regulatory Timeline

• Environmental surcharge case: Resolved and closed as of August 21, 2026.
• DSM amendment filing: Remains suspended through February 14, 2027; further procedural filings expected in coming months.

Stakeholders should monitor upcoming PSC filings for developments in the DSM case, which may carry implications for Duke Energy Kentucky’s cost structure and regulatory outlook into 2027.