Duke €nergy,

139 East Fourth Street, R 25 At I / P 0 Box 960 Cincinnati, Ohio 45201-0960 Tel 513-287-3601 Fax 513-287-3810 John Finnrganmduke-eneruv corn

John J Rnnigan, Jr Associate General Counsel

.PUBLIC SERVICE COMMISSIQN

VLA OVERNIGHT MAIL

November 6,2006

Ms. Elizabeth O’Donnell Executive Director Kentucky Public Service Commission 21 1 Sower Boulevard P.O. Box 615 Frankfort, Kentucky 40602-06 15

Re: In the Matter of an Adjustment of the Electric Rates of The Union Light, Heat and Power Company d/b/a Duke Energy Kentucky, Inc. Case No. 2006-00 172

Dear Ms. O’Donnell:

I have enclosed the following reports containing rate design proof of revenue in the

1. Revenue Proof with Weather - Contains a Schedule A and a Schedule B. Schedule A develops the total weather normalized revenue by summing Attachment 1 from the Settlement Agreement with the 25-year weather normal adjustment (Schedule B) previously provided in discovery as Attachment KyPSC- DR-02-37 b & c, page 1 of 2.

Schedule M - Contains Schedule C, which confirms that the rate design and billing determinant revenue produces the total revenues per Schedule A.

Schedule M-2.1 and M-2.2 Detailed - Contains the detailed computation, by tariff, which equates to the targeted revenue per Schedules A and C.

above-referenced case:

2.

3 .

www.duke-energy. corn

If you have questions or comments regarding this filing, please feel free to contact me.

Sincerely,

W J& J. Finnigan, Jr. Associate General Counsel

JJF/sew

cc: Hon. Dennis G. Howard (w/encl.) Hon Elizabeth E. Blackford (w/encl.) Hon. David G. Roehm (w/encl.) Hon. Michael L. Kurtz (wlencl.) Hon. Richard G. Raff (w/encl.)

19823 1 2

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Schedule B

Case No. 2006-00172 Attachment KyPSC DR-02-37b & c

Page 1 of 2

DUKE ENERGY KENTUCKY CASE NO. 2006-00172

COMPARATIVE ANALYSIS OF FORECASTED TEST YEAR REVENUES AND INCREMENTAL CHANGE FlJEL EXPENSE BASED ON ALTERNATIVE WEATHER NORMAL ENERGY FORECASTS REQUESTED BY STAFF

25 Yr Weather 2005 10 yr Weather DR-02-036b2 DR-02-036b3

REVENUE AT REVENUE AT TOTAL REVENUE AT TOTAL PRESENT PRESENT PRESENT

LINE RATE PRESENT PRESENT DIFFERENCE PRESENT DIFFERENCE -- NO. - CLASSIFICATION RATES (1) RATES (2) PRESENT REVENUE RATES (3) PRESENT REVENUE

(A) (B) (C) (D) (E) (F) (C - B) (E - B)

1 RESIDENTIAL SERVICE (RS) - $ 97,639,085 $ 97,486,236 $ (150,849) $ 98,327,269 $ 688.184 2 TOTAL RESIDENTIAL $ 97,639,065 $ 97,488,236 $ (150.849) $ 98,327,269 $ 688,184

3 DISTRIBUTION SERVICE (DS) $ 66,567,292 $ 66,546,226 $ (21,066) $ 66,706,359 $ 139,067 4 DT PRIMARY TIME OF DAY (DT-PRI) $ 19,862.321 $ 19,705,612 $ (156,709) $ 19,734,217 $ (1 28,104) 5 DT SECONDARY TIME OF DAY (DT-SEC) $ 38,378,456 $ 38,555.436 $ 176,980 $ 38,613,843 $ 235,387 6 ELEC SPACE HEATING (EH) $ 694,501 $ 693.717 $ (784) $ 694,255 $ (246) 7 SPORTS SERVICE (SP) $ 35,117 $ 35,117 $ - $ 35,033 $ (84) 8 SMALL FIXED LOADS (GSFL) $ 471.911 $ 471,607 $ (304) $ 472.819 $ 908 9 PRIMARYVQLTAGE (DP) ' $ 1,764,802 $ 1,764,753 $ '(49j $ 1,767,630 $ 2,828

10 TOTAL DISTRIBUTION $ 127,774,400 $ 127,772,468 $ (1,932) $ 128,024,156 $ 249,756

1 1 TIMEOFDAY (TT) $ 8,534,952 $ 8,535,469 $ 517 $ 8,543,153 $ 8.201 12 TOTAL TRANSMISSION $ 8,534,952 $ 8,535,469 $ 517 $ 8,543.153 $ 8,201

13 DT PRIMARY-REAL TIME PRICING (DT-RTP PRI) $ 782.491 $ 825,062 $ 42,571 $ 826,279 $ 43,788 14 DT SECONDARY-REAL TIME PRICING (DP-RTP SEC) $ 343,715 $ 298,121 $ (45,594) $ 298,584 $ (45,13 1) 15 DS-REAL TIME PRICING (DS-RTP) $ 70,100 $ 70,036 $ (64) $ 70,036 $ (64) 16 TT-REAL TIME PRICING (TT-RTP) 17 TOTAL REAL TIME PRICING

18 STREET LIGHTING (SL) 19 TRAFFIC LIGHTING (TL) 20 UNMTRD OUTDR LIGHT (UOLS) 21 OUTDOOR LIGHT SERV (OL) 22 NON STD STREET LIGHT (NSlJ) 23 NONSTDPOL'S (NSP) 24 S L - CUST OWNED (SC)

- $ 404,272 $ ,- 404.376 $ 104 $ 404.585 $ 313 (2.983) $ 1,599,484 $ (1,094) $ 1,600,578 $ 1,597,595 $

$ 1,164.518 $ 1,164.518 $ - $ 1,164,518 $ $ 262,097 $ 262,097 $ - $ 262,097 $ $ 362 $ 362 $ - $ 362 $ $ 521,455 $ 521,462 $ 7 $ 521,413 $ (42) $ 53,753 $ 53,753 $ - $ 53,753 $ $ 44,730 $ 44,727 $ (3) $ 44,722 $ (8 ) $ 3,250 $ 3,250 $ - $ 3,250 $

25 S L - OVRHD EQUIV (SE) $ 144,046 $ 144,045 $ u-. 144,046 $ 26 TOTAL LIGHTING $ 2,194,211 $ 2,194,214 $ 3 $ 2,194,161 $ (50)

27 TOTAL RETAIL REVENUE $ 237,743.226 $ 237.587,982 $ (155,244) $ 238,688,223 $ 944,997

28 OTHER $ 12,408 $ 12.369 $ (39) $ 12.408 $

29 TOTAL $ 237,755,634 $ 237,600,351 $ (155,283) $ 238,700,631 $ 944,997

PERCENTAGE CHANGE IN PRESENT REVENUE -0.065% 0.397%

RETAIL SALES VOLUMES 4,006,495,000 4.003.608.000 (2,887,000) 4,021,971,000 15,476,000

-0.072% 0.386%

ESTIMATED CHANGE IN FUEL COST (CHANGE IN SALES * INCR INCREASE FUEL) (4) ( 14,588)

ESTIMATED NET CHANGE IN REVENUE REQUIREMENT $ (140.695)

$ $ 78.200

$ 866,797

(1) As Filed (2) 10 Year Average Normalized Period 1996 - 2005 (3) 25 Year Average Normalized Period of 1981 - 2005 (4) Proposed Incremental Increase in Fuel

Current Base Fuel Cost Rate Current Incremental Fuel Adjustment Clause Rate Current Total Fuel Costs in Rates Proposed Base Rate Fuel Cost Incremental Increase in Base Fuel Cost

0 019091 $ I kWh -0.002525 $ I kWh 0 016566 $ / kWh 0.021619 $ / kWh 0.005053 $ / kWh

Schedule C

DUKE ENERGY KENTUCKY CASE NO. 2006-00172

REVENUES AT PRESENT AND SETTLEMENT RATES FOR THE TWELVE MONTHS ENDED DECEMBER 31,2007

(ELECTRIC SERVICE)

DATA: - BASE PERIOD -X-FORECASTED PERIOD TYPE OF FILING: -X- ORIGINAL -UPDATED __ REVISED WORK PAPER REFERENCE NO(S).: 25 Year Average Normalized Period of 1981 - 2005

SCHEDULE M PAGE 1 OF 1 WITNESS: JEFFREY R. BAILEY

WITH FUEL ADJUSTMENT CLAUSE

REVENUE AT REVENUE AT REVENUE % OF LINE RATE PRESENT PROPOSED CHANGE REVENUE NO. CLASSIFICATION RATES RATES (AMOUNT) CHANGE

(A) (6) (C) - (D=C-B) (E=D I 6)

1 2

3 4 5 6 7 8 9 10

11 12

13 14 15 16 17

18 19 20 21 22 23 24 25 26

27 28

29

30 31 32 33 34 35

36

RESIDENTIAL SERVICE (RS) TOTAL RESIDENTIAL

DISTRIBUTION SERVICE (DS) DT PRIMARY TIME OF DAY (DT-PRI) DT SECONDARY TIME OF DAY (DT-SEC) ELEC SPACE HEATING (EH) SPORTS SERVICE (SP) SMALL FIXED LOADS (GSFL) PRIMARY VOLTAGE (DP) TOTAL DISTRIBUTION

TIME OF DAY (TT) TOTAL TRANSMISSION

DT PRIMARY-REAL TIME PRICING (DT-RTP PRI) DT SECONDARY-REAL TIME PRICING (DT-RTP SEC) DS-REAL TIME PRICING (DS-RTP) TT-REAL TIME PRICING (TT-RTP) TOTAL REAL TIME PRICING

STREET LIGHTING (SL) TRAFFIC LIGHTING (TL) UNMTRD OUTDR LIGHT (UOLS) OUTDOOR LIGHT SERV (OL) NON STD STREET LIGHT (NSU) NON STD POL'S (NSP) S L - CUST OWNED (SC) S L - OVRHD EQUIV (SE) TOTAL LIGHTING

INTERDEPARTMENTAL SPECIAL CONTRACTS

TOTAL RETAIL REVENUE

INTERRUPTIBLE DEMAND CR BAD CHECK CHARGES RECONNECTION CHGS RENTS OTHER MlSC

TOTAL MlSC

98,327,269 118,177,684 19,850,415 98,327,269 11 8,177,684 19,850,415

66,706,359 80,253,989 13,547,630 19,734,217 23,563,723 3,829,506 38,613,843 47,362,559 8,748,716

694,255 842,852 148,597 35,033 4 1,850 6,817

472,819 566,281 93,462 1,767,630 2,141,593 373,963

128,024,156 154,772,847 26,748,691

8,543,153 10,449,478 1,906,325 10,449,478 1,906,325 8,543,153

826,279 846,430 20,151 298,584 308,132 9,548

70,036 72,482 2,446 404,5= 41 0,073 5,488

1,599,484 1,637,117 - 37,633

1,164,518 1,378,320 213,802 262,097 322,734 60,637

362 458 96 521,413 624,563 103,150

53,753 64,149 10,396 44,722 53,131 8,409

3,250 4,105 855 144,046 172,230 I 28,184

2,194,161 2,619,690 425,529 __II

142,091 170,619 28,528 12,408 15,225 2,817

238,842,722 287,842,660 48,999,938

(58,320) (58,320) 0 11,012 18,042 7,030 57,413 202,875 145,462

1,505,049 2,151,476 646,427 463,106,,- 918,857 455,751-

1,978,260 3,232,930 __ 1,254,670

20.19% 20.19%

20.31% 19.41% 22.66% 21.40% 19.46% 19.77% 21.16% 20.89%

22.3 1 yo -- 22.31%

2.44% 3.20% 3.49% 1.36%

18.36% 23.14%

19.78% 19 34%

26.31% 19.57% 19.39%

20.08% 22.70%

20.52%

0 00% 63.84%

253.36% 42.95% 98.41 %

26.52%

18.80%

63.42%

240,820,982 291,075,590 50,254,608 2YU!Z.% TOTAL REVENUE

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