AG's office intervenes in utility rate increase request, saving $18M

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FRANKFORT, Ky. (KT) – Kentucky ratepayers were saved nearly $18 million in proposed electricity increases through the action by the Attorney General’s Office of Rate Intervention


In June of last year, Kentucky Power Company filed an application with the Kentucky Public Service Commission (PSC) seeking approval to increase rates by $70 million, an increase of 13.16%.  This would have significantly raised the monthly electrical bill for Kentuckians in the 20 counties served by Kentucky Power.


“Our office fought before the PSC to limit the rate increase proposed by Kentucky Power, and we are proud that our efforts resulted in nearly $18 million in savings for Kentucky ratepayers,” said Attorney General Daniel Cameron.  “We know that COVID-19 has led to tough economic times for many Kentuckians, and we advocated for a plan to expedite the return of funds from the Tax Cuts and Jobs Act to customers.  We were pleased that the PSC agreed to this plan, ensuring that most Kentucky Power customers will see only a small or, in some cases, no increase to their usage bill for the next three years.”


Cameron intervened in the case in July and, along with other intervenors, was successful in reducing the overall rate increase by nearly $18 million, or approximately 25%.


The AG also advocated for Kentucky Power to use funds owed to ratepayers from the Tax Cuts and Jobs Act passed by Congress in 2017 to offset the approved increase.  The PSC’s order authorizes this measure, meaning more than $40 million annually will be returned to ratepayers over the next three years to help offset any increases.


The Attorney General and fellow intervenor, Kentucky Industrial Utility Customers, Inc. (KIUC), were able to get the PSC to recognize that Kentucky Power’s current business model utilized for maintaining and expanding transmission infrastructure is not sustainable. The PSC is likely to revisit this issue in the next Kentucky Power rate case.    


Kentucky Power is an investor-owned utility with customers in Boyd, Breathitt, Carter, Clay, Elliott, Floyd, Greenup, Johnson, Knott, Lawrence, Leslie, Letcher, Lewis, Magoffin, Martin, Morgan, Owsley, Perry, Pike, and Rowan Counties.

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Leamon Davidson

Ky Power and other utilities are happy to receive a $52 million rate increase after requesting a $70 million increase. Want $50 million, just ask for $70 million. Good negotiating scheme.

Saturday, January 16

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