By Blake Jackson
Last month, the Public Service Commission in Kentucky approved rate hikes for homeowners and businesses in eastern Kentucky, leading to an average monthly energy bill increase of approximately $8 for many residents. The initial request for an 18% rate hike for homeowners was denied, with the commission capping the increase. However, small businesses are expected to face a 10% spike in their rates, raising concerns about the economic impact on local communities.
Seth Long, executive director of the nonprofit Homes Incorporated, expressed gratitude for the capped increase but voiced worry about the challenges faced by small businesses in Eastern Kentucky, emphasizing the region's difficulty for business operations.
Kentucky Power attributed the rate hikes to a declining population and the loss of industrial customers in its service region. Residents in eastern Kentucky already have the highest average energy bills in the state, averaging around $187 per month.
Josh Bills, senior energy analyst for the Mountain Association, highlighted that businesses, nonprofits, and local governments in the region will collectively pay an additional $600,000 annually for electricity, alongside taxes and surcharges. Bills stressed the need for more resources to address the unique challenges in eastern Kentucky, including investments in renewable energy and efficiency improvements.
As part of the approved changes, the Public Service Commission extended customers' time to pay their bills from 15 to 21 days and implemented language limiting residential disconnections for nonpayment. Residents can provide public comments on Kentucky Power's plans for the next 15 years through Kentuckians for Energy Democracy.
Photo Credit: gettyimages-lishanskyphotography
Categories: Kentucky, Energy