FRANKFORT, Ky. (WYMT) – Attorney General Russell Coleman and Public Service Commission (PSC) Chair Angie Hatton announced they are filing a complaint against American Electric Power and its subsidiary, Kentucky Power.
The complaint accuses the company of unfairly forcing Kentuckians to subsidize utility construction in other states.
They say Kentucky Power customers pay the highest average residential rate of any utility in the state.
The officials claim between 2017-2022, Kentucky Power customers subsidized an estimated $66 million of transmission investments in other states, far exceeding the amount that was invested in the Commonwealth.
“For generations, out-of-state interests have targeted our Mountain counties, leaving behind persistent and painful challenges. American Electric Power and its subsidiary have ignored our calls for change and taken resources out of this region to turn a profit in other states. We refuse to allow this fundamental unfairness to go on any longer,” said Attorney General Coleman. “As Attorney General, it’s my responsibility to promote affordable and reliable power for Kentucky families. Today is a step in holding AEP accountable for taking advantage of Kentucky customers.”
“Kentucky Power disagrees with the claims made by the Attorney General and has demonstrated in previous Public Service Commission proceedings that our customers benefit from transmission investments in Kentucky and the region. A strong transmission grid provides our customers and communities with increased reliability and access to low-cost generation resources. The claim that our rates are the highest in the Commonwealth is simply untrue. In fact, Kentucky Power customer rates are lower today than they were in 2022, the year referred to in the press release. For more than 100 years, we have served eastern Kentucky, and we take our responsibility to serve our customers and communities seriously.
Our commitment to our customers is shared by our parent company, American Electric Power. AEP’s new CEO has visited our state five times in his first few months with the company to listen and learn from state and local leaders, share ideas to reduce rates through legislation and explore ways to be a partner in the redevelopment of eastern Kentucky. Kentucky Power and our more than 235 employees want our 162,000 customers to benefit from economic development opportunities in the region, and electric infrastructure is an important piece of that puzzle.
We understand that affordability is important to our customers, and we encourage customers to contact us for assistance managing their energy costs. We have offered solutions to lower customer bills and will continue to look for opportunities legislatively and with our regulators. We welcome the opportunity to work with our government and regulatory partners to find productive solutions to reduce the impact of electricity costs and power eastern Kentucky’s future.”
