Kentucky Public Service Commission

Order Entered: LG&E’s motion for confidential protection is hereby granted in part and denied in part. 2. LG&E’s request for confidential treatment of information relating to the Summary of Procedural Changes, Gas Emergency Operating Procedures (Section 1, 2, 3, 4, and 9), the Summary of Training Changes, the Distribution of Gas Emergency Operating Procedures, Abnormal Operating Conditions, the Line of Progression Enhancements, and the February 2012 and November 2012 Safety Audits is denied. 3. LG&E’s request for confidential treatment of information relating to LG&E’s Yard documentation of physical changes; the Mock Field Drill of December 2012; the Mock Drill and Safety Audit Schedule; the All Hands Meetings held on March 14, 2012, June 5, 2012, and September 19, 2012; the Safety Audits, except for those which occurred on February 20, 2012 and November 20, 2012; Operator Qualification Employee Records; and the Leak Investigation Trainings on February 20, 2012 and August 8, 2012 is granted and this information shall not be placed in the public record or made available for public inspection for an indefinite period of time. 4. Use of the materials in question in any Commission proceeding shall be in compliance with 807 KAR 5:001, Section 13(9). 5. LG&E shall inform the Commission if the materials in question become publicly available or no longer qualify for confidential treatment. 6. If a non-party to this proceeding requests to inspect materials granted confidential trea

Receipt of Payment for LG&E in the amount of $125,000.00

Letter dated 2/08/2013 filing summary report into the record

LG&E Penalty check in the amount of $125,000.00 for penalty in response to PSC Order of February 5th 2012

Final Order Entered: (1) The Joint Stipulation of Facts and Settlement Agreement is adopted & approved as a complete resolution of all issues in this case. (2) LG&E is assessed a penalty of $250,000.00. (3) LG&E shall pay $125,000.00 of the $250,000.00 civil penalty within 30 days of this Order by cashier’s check or money order payable to Kentucky State Treasurer & mailed or delivered to Office of General Counsel, KY PSC. (4) The remaining $125,000.00 of civil penalty is suspended on condition that LG&E abide by terms contained in Settlement Agreement & provide all documentation required within time allotted in ordering paragraphs 5, 6, 8, and 9 herein. (5) Within 30 days of date of entry of this Order approving Settlement Agreement, LG&E shall provide the following: Records of all leak investigation & emergency-response procedures & situational-awareness training conducted during 2012 which place increased emphasis on leak probing, leak pinpointing, & perimeter establishment, including: Records of all leak investigation procedure audits & tests conducted during 2012 which place increased emphasis on leak probing, leak pinpointing, and perimeter establishment; Records of all leak investigation & emergency response awareness initiatives implemented during 2012 which place increased emphasis on leak probing, leak pinpointing, & perimeter establishment; and Summary documentation of leak investigation & emergency response policy or procedural changes implemented during 2012.

Letter Filing Summary Report into the Record

Stipulation and Settlement agreement entered by LG&E and PSC staff

LG&E's revised incident report submitted to the Pipeline and Hazardous Material Safety Administration

Memorandum dated 12/10/12 for Informal Conference of 12/3/12; Comments, if any, due 12/19/12

Order Entered: On the Commission’s own motion, the hearing scheduled for November 27, 2012, at 1O:OO a.m. Eastern Standard Time, has been rescheduled to February 12, 2013, at 1O:OO a.m. Eastern Standard Time. The hearing will take place in Hearing Room 1 at the Commission’s Offices, 21 1 Sower Boulevard, Frankfort, Kentucky.

Commission Staff's Notice of Informal Conference

Memorandum dated 9/06/2012 for Informal Conference of 8/24/2012; Comments, if any, due within seven days of receipt

COMMISSION STAFF’S NOTICE OF INFORMAL CONFERENCE

LG&E's Response to 6/26/12 Order

Order Entered: (1) LG&E shall submit to the Commission, within 20 days of the date of this Order, a written response to the allegations contained in the Report. (2) LG&E shall appear on November 27, 2012, at 1O:OO a.m., Eastern Standard Time, in Hearing Room 1 of the Commission’s offices at 211 Sower Boulevard in Frankfort, Kentucky, for the purpose of presenting evidence concerning the alleged violations of KRS 278.495 and of showing cause why it should not be subject to the penalties prescribed in KRS 278.992 for these alleged violations. (3) At the scheduled hearing in this matter, LG&E shall also present evidence on the adequacy, safety, and reasonableness of its practices related to the construction, installation and repair of natural gas facilities and whether such practices require revision as related to this incident. (4) The November 27, 2012 hearing shall be recorded by videotape only. (5) The Report in Appendix A is made a part of the record in this case. (6) Any requests for an informal conference with Commission Staff shall be set forth in writing and filed with the Commission within 20 days of the date of this Order.