Date: 11-30-2017
Attorney General says 9% ‘too much’ for customers to bear…
Kentucky Power has been under the microscope since the announcement of its requested rate increase that has been in the works since June. The company recently announced it would be requesting a 9 percent increase, lowered from the original 16 percent. However, the company also recently requested to keep certain records away from public inspection, and opposition from at least one state official to the reduced increase continues.
Last week, Kentucky Power announced that it has offered a settlement agreement to the Kentucky Public Service Commission, which decreases the company’s revenue requirement request to $34.7 million — $28.6 million less than originally requested. This request would lower the requested rate increase, but is still slated to increase the residential customer rate by approximately 9 percent.
In a statement last week, Kentucky Power President and CEO Matt Satterwhite said this 9 percent is needed to help Kentucky Power assist in economic development.
“The settlement will help Kentucky Power recover growing costs of providing safe and reliable service to customers and allow us to continue upgrading the electric network to assist in economic growth,” Satterwhite said.
However, Kentucky Attorney General Andy Beshear said this week he will continue to fight against the rate increase.
“Eastern Kentucky families cannot afford another rate increase, much less a 9 percent rate hike that the company is claiming is a ‘fair’ settlement,” Beshear told the News-Express. “I will not abandon these families who are already past the breaking point. My office will continue to oppose any increase and fight for the people of Eastern Kentucky at the final hearing before the PSC on Dec. 6 and beyond.”
Kentucky Power announced the lower rate request on Nov. 22, which is the same day the company filed a motion for confidential treatment to the Kentucky Public Service Commission, asking that the PSC grant confidential treatment for specific documents relating to expenses of the company. Among those documents which Kentucky Power is seeking to deem as private information is the company’s “maintenance budgeting information” and “information regarding 2018 salary increases that have not yet been made public,” according to the request.
According to the request, the company is seeking to withhold its maintenance budgeting information because “public disclosure” of the information would give a “competitive advantage to Kentucky Power’s direct competitors.” The company claims that this information on budgets could hinder Kentucky Power’s ability to “minimize costs for its rate-paying customers.”
The request notes that Kentucky Power’s 2018 salary increases should not be made public because knowledge therein could “enable competitors to recruit key company and American Electric Power personnel” and “compromise” the company’s ability to “negotiate employee compensation terms.”
The request also seeks to protect Kentucky Power generation unit performance data, which Kentucky Power said would potentially increase costs for the company and its customers.
According to Communications Manager Allison Barker, this request is a “common procedure.”
“The recent filing is in response to data requests made in the rate review request for information that is competitive, proprietary and sensitive in nature,” said Barker. “For example, if confidential information on planned generation maintenance is made public prematurely, that could adversely affect the price of electricity Kentucky Power — and ultimately Kentucky Power customers — pay for electricity purchased on the open market during a planned outage.”
Barker said the salary increases included union salary information.
“Similarly, some of the salary information requested relates to union workers who are currently in collective bargaining talks,” she said.
By Buddy Forbes
Appalachian News-Express
