KRS 278.192: Test period for proposed rate increase.

(1) For the purpose of justifying the reasonableness of a proposed general increase in

rates, the commission shall allow a utility to utilize either an historical test period of

twelve (12) consecutive calendar months, or a forward -looking test period

corresponding to the first twelve (12) consecutive calendar months the proposed

increase would be in effect after the maximum suspension provided in KRS

278.190(2).

(2) (a) Any application utilizing a forward -looking test period shall include a base

period to be f iled with the application, which begins not more than nine (9)

months prior to the date of filing, consisting of not less than six (6) months of

actual historical data and not more than six (6) months of estimated data at the

time of filing.

(b) Actual res ults for the estimated months of the base period shall be filed no

later than forty-five (45) days after the last day of the base period.

(c) Upon the filing of an application for a proposed increase in rates based on

either a historical or a forward -looking test period, any intervening party in

opposition to such application shall have the right to examine all data,

including individual invoices, which comprise the actual expenditures of the

utility incurred for ratemaking purposes for the preceding twelve (12) month

period immediately prior to the filing date.