Keep in mind that the PSC just announced in June that Kentucky Power customers will see a 6.37% increase on their utility bills beginning in July 2025 due to the retirement of the Big Sandy coal plant, which was demolished in 2016. This shows up as a “Securitized Surcharge Rider” on customer bills. My most recent charge for this rider was $25.01.
In 2023, Kentucky Power sought an 18.3% rate increase but was ultimately granted only a 5.66% rise in residential rates—thanks, in part, to public comments. In 2021, changes resulted in an increase of 15.46% for residential ratepayers. Since 2010, Kentucky Power customers have endured multiple significant bill hikes, resulting in the highest average residential bills in the state, even as average customer usage has declined.
According to statistical records on the PSC website, in 2010, the average customer used 1,523 kWh per month; in 2024, that statistic was 1,183 kWh.. Yes, the kids are turning off the lights, and folks are trying their best to reduce their electrical use. Sadly, a 14.9% rate increase would only help to severely increase average bills during that same period, going from $131 in 2010 (up $20 from 2009) to $190 currently, and then onto approximately $220 for 2026. This is significantly above the average rate of inflation for that time period and is not a sustainable trend.
A recent notice by Kentucky Power makes it known that revenue is needed for its stake in the Mitchell Plant in Moundsville, WV. The following quote is from their website: “There’s no doubt the cost of providing electricity to homes and businesses has become more expensive across our nation, but especially in eastern Kentucky. The loss of population and industry here has created real challenges, pushing costs even higher..” They do not say how they contributed to the population and industry loss when they pulled out of Louisa, and for the most part, stopped burning Eastern Kentucky coal.
For background, according to the PSC news release dated Oct. 7, 2013, “The Mitchell purchase (KPCO purchased ½ of the company with Wheeling Power owning the other ½ and AEP being the parent company of both) will cost about $536 million, whereas upgrading Big Sandy to meet stricter U.S. Environmental Protection Agency air quality rules would cost nearly $1 billion.” In addition, Kentucky Power ratepayers had to take on ½ of the debts and liabilities for the Mitchell Plant when decommissioning its Louisa plant. The deal turned out to be very costly for ratepayers.
Currently, our 606 brothers and sisters are in a real fix. Struggles exist with low wages and high poverty rates, many are having trouble paying their bills, federal assistance for LIHEAP is on the decline, and strains are on the budgets of families and businesses.
Your voice is needed more than ever! The best way to fight back on the proposed 14.9% rate hike is to submit a public comment and/or speak up at a public hearing.
To file public comments in this rate case, include the case number (Case No. 2025-00257 Kentucky Power) within the subject line of your email to psc.comment@ky.gov and provide your full name and place of residence in the body of the e-mail; or send via mail to Public Service Commission, 211 Sower Boulevard, Post Office Box 615, Frankfort, KY 40602. Hopefully, the dates for public hearings will be announced soon.
This is no time to be idle. These hills, our home, our businesses, and our families are worth fighting for!
***
Suzanne Barker Griffith is a commumity activist, grandmother, retired Kentucky Teacher, and current Boyd County Justice of the Peace.
