Agreement means less wait time for utilities to respond to outages

FRANKFORT, Ky. (WTVQ) – Utility companies in Kentucky will not have to wait as long to get the equipment needed during an outage under a new agreement.

The Kentucky Public Service Commission has approved an agreement giving utility companies greater flexibility to transfer equipment to each other.

In an order issued Thursday, the Public Service Commission agreed to pre-approve emergency transfers of large electric transmission system transformers with a value of more than $1 million.

State law requires Public Service Commission to approve of equipment sales or purchases in excess of $1 million.

The pre-approval will speed up the transfer of utility-owned transformers between the four Kentucky utilities under PSC jurisdiction.

The Regional Equipment Sharing for Transmission Outage Restoration, or RESTORE, agreement was started in 2016 by Kentucky Utilities Co. (KU), Louisville Gas & Electric Co. (LG&E), PPL Electric Utilities, the Southern Company, and the Tennessee Valley Authority.

In the event of an outage or other event that threatens a utility’s transmission system, the RESTORE agreement gives participating utilities the ability to quickly obtain the equipment needed to complete repairs. Because large transformers typically need to be ordered far in advance, the ability to purchase spares from other utilities without seeking PSC approval will greatly speed restoration, the utilities said in their application to the PSC.

A total of 28 utilities in the South and Midwest now participate in the RESTORE agreement.

Other Kentucky companies include Duke Energy Kentucky and East Kentucky Power Cooperative, both of which joined KU and LG&E in seeking PSC approval.

Categories: State News

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