PSC ALLOWS A MUCH SMALLER PROPORTION RAISE THAN KENTUCKY POWER WAS ASKING FOR
JANUARY 24, 2024 – written by WADE QUEEN
Kentucky Power customers will see an increase in their monthly bill, after the Public Service Commission has issued a ruling for Kentucky Power’s request to increase revenue. On Friday, January 19, the Kentucky Public Service Commission issued an Order approving a partial rate hike in the Kentucky Power rate case (2023-00159).
In a news release sent out by the Public Service Commission, they said the average monthly residential bill would be one-third (1/3) of what was requested.
Officials said Kentucky Power initially proposed an increased revenue rate amounting to $93.9 million. That number reportedly decreased during public hearings by $74.67 million.
The ruling reportedly decreased the agreement during public hearings by an additional $14.63 million, making the customers’ bill increase by 5.66% as opposed to what would have originally been 18.3%.
The Kentucky Public Service Commission approved increasing their monthly bills for the average residential customer by about 5.66%, or the equivalent of a monthly utility bill increasing by $8.32.
In making its decision, the Commission found the proposal’s impact on residential customers to be “excessive and disturbing,” in part as evidenced by the comments in the case indicating customers could not afford further rate increases.
The Public Service Commission’s Order denied Kentucky Power’s request to begin power hedging programs, which were proposed only because of Kentucky Power’s inadequate generation, and the Order also denied a proposal to add a tracker to recover distribution-related expenses between rate cases.
As part of the order, a spokesperson for Kentucky Power said the company’s proposal to move the due date of bills back 6 days, from 15 to 21 days, to allow customers more time to pay once their bills are received each month was approved. The spokesperson believed this would help increase flexibility in payment options.
“Rate cases are not easy, but they don’t divert or distract us from our number one priority of providing safe and reliable power to our customers,” according to a Kentucky Power spokesperson.
The rates approved by the order will appear on the bill issued on or after January 16, 2024, according to the Kentucky Power company.
Yes. January 16. Which happened to be the same day the extremely brutal weather in our area was in full swing with temperature at around or below zero degrees during the sunrise on the morning of January 16.
