ASHLAND, Ky., Aug. 8, 2017 – Kentucky Power has filed an updated application with the Kentucky Public Service Commission to lower its rate request and pass $8.1 million in savings onto customers.
“We worked with our bankers to refinance about $325 million in existing long-term debt, similar to how a homeowner might refinance a mortgage,” said Kentucky Power President Matt Satterwhite. “We were able to reduce our interest rate by about 3 percent and we are passing that savings onto customers.”
Kentucky Power on Monday filed an update to its application that reduces its base rate adjustment by about $6.2 million, from $69.6 million to $63.3 million. The update also includes an additional $1.9 million in customer savings through lower riders. The interest savings reduces the Environmental Surcharge and the Big Sandy Retirement Rider, which is being renamed the Decommissioning rider to reduce confusion. The total rate request reduction is $8.1 million.
“I want customers to know we are working every day to control costs and provide them with programs and services to keep their bills as low as possible,” Satterwhite said. “That is one of the biggest reasons Kentucky Power is leading the charge to diversify the economy and attract jobs.
“The biggest driver in our increasing rates is the loss of customers and industry and that comes from a loss of jobs and places to go to work. Those of us left behind are left to pay the fixed costs of running an electric system designed to serve everyone no matter where they choose to live. That is why Kentucky Power is so focused on flipping the script to change the equation and focus on increasing jobs and industry to spread the costs across more customers.”
Kentucky Power first filed its application with the Public Service Commission on June 28 seeking a review of its base rates. At that time, the company requested an increase of 16.8 percent for residential customer and 8 to 15 percent for commercial and industrial customers. If approved by the commission, the new rates could go into effect in mid-January.
Under the adjusted filing, a residential customer increase is lowered by 2 percent. For commercial and industrial customers, the rate request is now 1 percent lower.
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Kentucky Power, with headquarters in Ashland, Ky., provides service to about 168,000 customers in all or part of 20 eastern Kentucky counties. It is an operating company in the AEP system, one of the largest electric utilities in the United States, delivering electricity and custom energy solutions to nearly 5.4 million customers in 11 states. AEP also owns the nation’s largest electricity transmission system. AEP’s headquarters are in Columbus, Ohio.
