In October 2018, The Kentucky Public Service Commission approved a filing that extended some energy efficiency program participation to include industrial customers for the first time. The filing went into effect on Jan. 1, 2019.
The Industrial DSM program in accordance with KRS 278.285(3), states:
“The commission shall assign the cost of demand-side management programs only to the class or classes of customers which benefit from the programs. The commission shall allow individual industrial customers with energy-intensive processes to implement cost-effective energy efficiency measures in lieu of measures approved as part of the utility's demand-side management programs if the alternative measures by these customers are not subsidized by other customer classes. Such individual industrial customers shall not be assigned the cost of demand-side management programs.”
Industrial customers have the option to opt out certain meters from the energy efficiency programs. Customer meters that opt out will not be charged under LG&E and KU’s Demand-Side Management Cost Recovery Mechanism (“DSM Mechanism”). Customer meters that are not eligible to opt out, or that remain opted in, will be charged under the DSM Mechanism and the facilities served by those meters will remain eligible to participate in the LG&E and KU’s business rebate programs.