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Kentuckians Save Nearly $18 Million in Proposed Rate Increases
Kentucky Ag Connection - 01/19/2021

The Office of Rate Intervention (ORI), before the Kentucky Public Service Commission (PSC), helped save Kentucky ratepayers nearly $18 million in proposed electrical rate increases.

Last June, Kentucky Power Company (Kentucky Power) filed an application with the PSC seeking approval to increase rates by $70 million, an increase of 13.16 percent. This would have significantly raised the monthly electrical bill for Kentuckians in the counties served by Kentucky Power.

Citing that COVID-19 has led to tough economic times for many Kentuckians, the state attoryney general said his office advocated for a plan to expedite the return of funds from the Tax Cuts and Jobs Act to customers. Kentucky Power customers will see only a small or, in some cases, no increase to their usage bill for the next three years. The intervention reduced the overall rate increase by nearly $18 million, or approximately 25 percent.

The attorney general 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 that more than $40 million annually will be returned to ratepayers over the next three years to help offset any increases.

Intervenors such as the 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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