Kentucky Power has filed a request to the Public Service Commission to increase electric rates by 14.9% for residential customers, with a 13 to 15% hike expected for commercial and industrial clients.

The Aug. 29 filing to the Public Service Commission listed several reasons for the rate hikes, including recovering increased costs and coping with loss of population and industry, especially in the eastern stretch of the state, where Kentucky Power operates. The commission is responsible for regulating utilities in Kentucky.

A hearing date has not yet been set, as reported by WCHS, but the proposed increase would take effect in spring 2026, if Kentucky Power’s request is approved by the PSC.

Kentucky Power’s headquarters are in Ashland, and the company serves about 162,000 customers across 20 Eastern Kentucky counties, according to its website

It hasn’t been long since Kentucky Power’s most recent rate increase. In January 2024, the state commission approved a 5.66% increase after the company requested a hike of about 18.3%.

“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,” Kentucky Power’s webpage about the recently proposal reads.

In July, another increase hit Kentucky Power customers in the form of a “Securitized Surcharge.” This increased customers’ electric bills by 6.37%.

“Our top priority is to provide safe and reliable service to all of our customers. This process allows the PSC to review our plans to address reliability, promote economic development and ensure we are meeting the needs of our customers. Planned proposed investments include strengthening our electric system to better withstand severe weather, replacing aging equipment and preparing for new generation in our service territory,” Kentucky Power officials said in an Aug. 25 statement.

What could this mean for your electric bill?

Kentucky Power reports the average base rate paid by residential customers is 15 cents per kilowatt-hour, while the typical commercial rate is 13.22 cents and the average industrial base rate is 8.35 cents.

The company says the proposed residential increase would increase average monthly bills by $27.30, while commercial customers would pay an average of $40.17 more each month.

More than 50 public comments opposing Kentucky Power’s proposed hike have been submitted to the PSC, with many citing already-high utility bills, low wages, expensive groceries and more as reasons they can’t afford to pay more for electricity.

You can submit a public comment to the PSC online by entering in the case number (2025-00257 for Kentucky Power’s proposed increase), your contact information and your comment.

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