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Kentucky Power Rate Review

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. When we make decisions about investments, we must balance those investments with keeping costs as low as possible. To continue making investments and providing the level of service all customers deserve, regulated utilities apply with the Public Service Commission (PSC) to have rates reviewed and adjusted.

On August 29, 2025, we will file a base rate review with the PSC, requesting to adjust rates to recover increased costs. The proposed increase is 14.9% for residential customers and approximately 13-15% for commercial and industrial customers, with new rates projected to be in place in Spring 2026. This case is necessary to maintain and improve the service you depend on.

During this thorough and transparent review process, we always search for ways to reduce the customer impact. This review has a number of proposals that will be beneficial, and we want you to know about them.

Benefits for You

New Options for Customers

  • Rates designed to reduce seasonal spikes for customers who use the most electricity.
  • FlexPay, which takes advantage of new metering technology to offer a pay-as-you-go option.

Investments to Reduce Power Outages

  • Upgrading equipment so it can better withstand severe weather.
  • Expanding tree trimming.

Stable, Affordable Generation

  • Investing to extend the lives of our existing power plants and planning new power generation.

Our Commitment to Eastern Kentucky

  • To create positive change by attracting people and industries back to our region.
  • Continued support of local non-profits across our service area.
  • Minimizing customer impacts and transparency throughout this process.

We're Here to Help

We recognize that this review comes when individuals, families and businesses are seeing higher costs for products and services, including electric bills.

We offer several programs, services and rebates to help you control your energy usage and lower monthly bills.

Frequently Asked Questions

Base rates refer to the costs of building, maintaining and operating our electric system, including power plants, transmission and distribution lines and facilities to serve you and your neighbors.

  • The request supports system reliability, storm response, vegetation management and increased in-state generation.
  • Storm frequency and severity have increased, requiring additional investments in grid hardening and vegetation management.

The proposed increase is 14.9% for residential customers, or an average of approximately $27.30 in their monthly bill; and approximately 13.8% for commercial customers, or an average of about $40.17 in their monthly bill.

  • A new two-tier rate structure will lower the bill impact for customers using more than 2,000 kWh per month, benefiting approximately 25% of customers with high winter usage.
  • FlexPay will allow customers to prepay any amount, receive usage and balance alerts, and restore service automatically once balances are reloaded. This program supports flexible budgeting and more frequent bill management.

If approved, new rates are projected to be in place in Spring 2026.

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