Kentucky Public Service Commission

Order Entered: 1. LG&E's Motion for Reconsideration is granted. 2. LG&E shall use an overall rate of return on capital of 7.04 percent, a return-on- equity rate of 9.70 percent, a tax gross-up factor of 0.745444, and an overall grossed-up return of 8.83 percent in all monthly environmental surcharge filings beginning with the January 2018 expense month. 3. All other provisions of the Commission's December 19, 2017 Order that are not in conflict with this Order shall remain in full force and effect.

Final Order Entered: 1. LG&E's request to submit this case for a decision on the existing evidence of record without a hearing is granted. 2. The environmental surcharge amounts determined by LG&E for the review period ended April 30, 2017, are just and reasonable. 3. In the second full billing month following the date of this Order, LG&E shall increase its jurisdictional environmental revenue requirement by $799,112 for four months and $799,113 for one month. 4. LG&E shall roll $52,893,140 of incremental environmental surcharge amounts found to be just and reasonable herein into its existing base rates, for a total base rate environmental component of $126,556,149. The roll -in shall be allocated to the customer classes as described in the Settlement Agreements approved in Case Nos. 2011 -00162, 2011-00232, and 2016-00371. 5. LG&E shall use an overall rate of return on capital of 7.04 percent, a return-on-equity rate of 9.70 percent, a tax gross-up factor of 0.61334, and an overall grossed-up return of 10.34 percent in all monthly environmental surcharge filings beginning in the second full billing month following the date of this Order. 6. The proposed revisions and additions to LG&E's monthly ES forms are approved. 7. Within 20 days of the date of this Order, LG&E shall file with the Commission, using the Commission's electronic Tariff Filing System, revised tariffs reflecting the changes to its base rates as a result of the roll-in of environmental surcharge amounts

Louisville Gas and Electric Company respectfully requests the Commission issue an Order by December 15, 2017.

Derek A Rahn Louisville Gas and Electric Company

Response of Louisville Gas and Electric Company to the Third Request for Information of the Commissions Order dated October 3, 2017.

Derek A Rahn Louisville Gas and Electric Company

Data Request

Response of Louisville Gas and Electric Company to the Second Request for Information of the Commissions Order dated September 11, 2017.

Derek A Rahn Louisville Gas and Electric Company

Data Request

Direct Testimony of Derek A. Rahn and the Response of Louisville Gas and Electric Company to the First Request for Information in Appendix B of the Commissions Order dated July 27, 2017.

Derek A. Rahn Louisville Gas and Electric Company

Written Statement of Louisville Gas and Electric Company in response to Ordering Paragraph 2 in the Commissions July 27, 2017 Order.

Derek A Rahn Louisville Gas and Electric Company

Order Entered: 1. Unless otherwise ordered by the Commission, the procedures set forth in 807 KAR 5:001, Section 8, shall be followed when filing papers in this proceeding. 2. Pursuant to 807 KAR 5:001, Section 8(10), within seven days of entry of this Order, LG&E shall file a written statement, with a copy to parties of record, affirming that it, or its authorized agent, possesses the facilities to receive electronic transmissions. 3. Unless a party granted leave to intervene states its objection to use of electronic filing procedures in a motion for intervention, the party shall: a. Be deemed to have consented to the use of electronic filing procedures and the service of all papers, including Orders of the Commission, by electronic means; and b. Within seven days of the date of an Order of the Commission granting its intervention, file with the Commission a statement that: (1) Affirms that it, or its authorized agent, possesses the facilities to receive electronic transmissions; and (2) Sets forth the electronic mail address to which all electronic notices and messages related to this proceeding should be served. 4. If a party objects to the use of electronic filing procedures and the Commission determines that good cause exists to excuse that party from the use of electronic filing procedures, service of documents on that party and by that party shall be made in accordance with 807 KAR 5:001, Section 4(8).