RECEiVED

10£. MAY 1 0 2017

PPL companies PUBLIC SERVICE

COMMISSION

May 9, 2017

Dr. Talina R. Mathews Executive Director Public Service Commission of Kentucky 211 Sower Boulevard Frankfort, Kentucky 40602

RE: Application of Kentucky Utilities Company for a Certificate of Public Convenience and Necessity Authorizing KU to Bid on a Franchise Established by the City of Hartford

Dear Dr. Mathews:

Enclosed please find an original and l 0 copies of an Application for a Certificate of Public Convenience and Necessity ("CCN"), to enable Kentucky Utilities Company (the "Company") to apply for an electric franchise with the City of Hartford (the "City") pursuant to KRS 278.020(5). In a public meeting held on April 27, 201 7, the City Council of Hartford, Kentucky passed Ordinance No. 17-02, which directed the advertising for bids and selling of an electric franchise in the City. The Company asks that the Commission enter an Order granting a Certificate of Public Convenience and Necessity to bid for and acquire a franchise from the City on or before May 22, 20 17.

For many years, the Company has been the owner of a franchise granted by the City to erect facilities for providing electric service to the City and the inhabitants thereof. The franchise to be obtained will replace the previous franchise.

If you have any questions, please do not hesitate to contact me.

Very truly yours,

Enclosures

lG&E and KU Energy llC

l egal Department 220 West Main Street l ouisvil le, Kentucky 40202

www.lge·ku.com

Allyson K. Stu rgeon Senior Corporate At torney T 502·627·2088

F 502·217·4995 allyson.stu rgeon @lge·ku .com

BEFORE THE RECEIVED KENTUCKY PUBLIC SERVICE COMMISSION

In the Matter of:

APPLICATION OF KENTUCKY UTILITIES COMPANY FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AUTHORIZING KU TO BID ON A FRANCHISE ESTABLISHED BY THE CITY OF HARTFORD, KENTUCKY

APPLICATION

) )

MAY 1 0 2017

PUBLIC SERVICE COMMISSION

)CASE NO. __ ) )

The Applicant, Kentucky Utilities Company ("KU''), respectfully states as follows:

I . The Post Office address of the principal office of Applicant is 220 West Main Street,

Louisville, Kentucky 40202. KU is a Kentucky corporation authorized to do business in the

Commonwealth of Kentucky.

2. KU is a utility engaged in the business of supplying electric service in and to various

cities and the inhabitants thereofwi thin the Commonwealth of Kentucky, and has conducted such

business for a number of years. The instant filing is made in accordance with Section 278.020(4)

of the Kentucky Revised Statutes.

3. Receipt of the requested certificate will allow KU to pursue its bid on a new

franchise for which the City of Hartford, Kentucky (the "City'') has solicited bids pursuant to

resolution or ordinance and advertisement, a copy of which is attached hereto as Exhibit A.

4. A certified copy of KU's Articles of Incorporation is already on file with the

Commission in Case No. 2010-00204 and is incorporated herein by reference pursuant to 807 KAR

5:001 , Section 14(2)(a).

5. There is and will continue to be a demand and need for electric service in the areas

of the City subject to the franchise, and KU desires to obtain a franchise in accordance with the

bidding protocol established by the City.

6. Should KU be successful in acquiring said franchise, it will file copies thereof with

the Commission.

WHEREFORE, Kentucky Utilities Company asks that the Commission enter an Order

granting to KU a Certificate of Public Convenience and Necessity to bid for and acquire a franchise

from the City on or before May 22,2017.

Dated at Louisville, Kentucky, this 9lh day of May, 2017.

Allyson K. Sturgeon / Senior Corporate Attorney Kentucky Utilities Company 220 West Main Street Louisville, Kentucky 40202 (502) 627-2088

Exhibit A

COMMONWEALTH OF KENTUCKY CITY OF HARTFORD

ORDINANCE NO. 17-02

AN ORDINANCE CREATING A FRANCHISE FOR THE ERECTION, LAYING AND MAINTENANCE OF ELECTRIC FACILITIES AND APPURTENANT FACILITIES AND EQUIPMENT IN, ALONG AND ACROSS THE PUBLIC WAYS, ROADS, STREETS, ALLEYS AND OTHER PUBLIC PLACES IN THE CITY OF HARTFORD, KENTUCKY: FOR FURNISHING AND SELLING ELECTRICITY BY MEANS OF SAID FACILITIES; AND PROVIDING FOR THE SALE OF SAID FRANCHISE.

WHEREAS, the City of Hartford ("City") wishes to ensure that electric service continues to be

furnished to its citizens in a reliable and efficient manner;

WHEREAS, the City is aware that the provision of such service requires the continued use of

public streets, ways, alleys and other public places;

WHEREAS, the franchise granted to and acquired by Kentucky Utilities Company on October

23, 1997, under which that utility provided such service, will expire by its terms; October 23,

2017.

WHEREAS, the City wishes to provide for the sale of a new franchise for the benefit of its

citizenry, giving effect to Section 96.010 of the Kentucky Revised Statutes;

NOW, THEREFORE, BE IT ORDAINED as follows:

Section 1. An exclusive franchise ("Franchise") to use the City's public rights-of-way, as

described in the Franchise Agreement attached to this Ordinance, is hereby created.

Section 2. The Franchise created by this Ordinance shall be bid in accordance with the

applicable requirements of the Constitution of the Commonwealth of Kentucky and Chapter 424

of the Kentucky Revised Statutes, as well as any applicable City ordinances.

Section 3. The Franchise created by this Ordinance shall be awarded to the highest and best

bidder as shall be detelll'llned by the City in its sole discretion. ln awarding the Franchise, the

City shall consider the technical, managerial, and financial qualifications of the bidder to

perfonn its obligations under the Franchise.

Section 4. The winning bidder and the City shall negotiate, execute and be bound by a

Franchise Agreement with terms identical to, or substantially identical to, the Franchise

Agreement referenced in Section 1 above and attached hereto, such Agreement to contain terms

"that are fair and reasonable to the City, to the purchaser of the Franchise and to the patrons of

the utiHty" (KRS Section 96.01 0). Such Franchise Agreement shall become effective with bills

rendered October 23, 2017 and upon expiration of the existing franchise agreement, to allow the

City and the winning bidder to develop appropriate procedures for identifying and reviewing the

electric-consuming entities within the City' s corporate limits.

Section 5. All ordinances or parts of ordinances in conflict with the provisions of this

Ordinance are hereby repealed.

Section 6. Should any section, clause, line, paragraph, or part of this Ordinance or the

attached Agreement be held WlCOnstitutional or invalid for any reason, the same shall not affect

the remainder of this Ordinance or the attached Agreement, as applicable.

Section 7. Time is of the essence in carrying out the terms and the provisions of this

Ordinance and the Franchise created herein.

Section 8. This Ordinance shall become effective from and after its passage and publication.

Read at a meeting of the Hartford City Council on the 23rd day of March, 2017; a second

reading was held on the 27th day of April, 2017; said Ordinance was READ and APPROVED on

the 27th day of April, 2017.

~R//'~ ARD D~AN MINTON, MAYOR

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