ASHLAND, Ky., June 19, 2023 – Kentucky Power’s future plans for providing safe, reliable power will be outlined in an upcoming filing with the Kentucky Public Service Commission (PSC).
The application will include a comprehensive rate review and a request to allow Kentucky Power to use a financial tool known as securitization. Securitization allows energy providers to refinance previously incurred costs, such as generation, storms and fuel over a longer period and at a lower financing rate. By securitizing a large portion of the rate base and excluding other proposals from the rate request, Kentucky Power has limited the proposed increase in revenue to an overall 13.6 percent.
“We are sensitive to the financial hardships some of our customers are experiencing. Our team takes steps every day to ensure we are doing what is needed to keep power flowing while managing the costs to serve our customers,” said Kentucky Power President and COO, Cindy Wiseman.
The rate review proposal includes multiple customer benefits:
- Introduction of an optional seasonal tariff to address high usage during winter months.
- Expansion of tree clearing program aimed at increasing reliability.
- Increased funding for the company’s energy assistance programs to allow more customers the benefit.
- Extension of bill due date from 15 to 21 days to give customers more flexibility.
Kentucky Power initiated its last rate review in 2020. The filing for this new review will be made with the PSC on June 29, and new rates will likely take effect in early 2024.
“We are committed to eastern Kentucky and will continue to be a leader in economic development and a strong community partner, working together with others to grow our region,” said Wiseman. “Establishing new rates that are more reflective of current demands and the unique environment we serve will help ensure Kentucky Power is best positioned to provide the safest and most reliable service to our customers and communities.”
A rate review, or rate case, is a comprehensive and transparent process in which the PSC reviews the costs, business practices and rates of an energy provider. Complete case information can be found on the PSC’s website. Kentucky Power’s filing will detail their plan for providing reliable service to customers, and the PSC will determine whether the request is fair, just and reasonable for their customers. To learn more about utility rate cases visit, www.KentuckyPower.com/rates.
Kentucky Power provides service to about 163,000 customers in 20 eastern Kentucky counties. It is an operating company of American Electric Power (NYSE: AEP), based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP’s approximately 17,000 employees operate and maintain the nation’s largest electricity transmission system and more than 225,000 miles of distribution lines to safely deliver reliable and affordable power to 5.6 million regulated customers in 11 states. AEP also is one of the nation’s largest electricity producers with approximately 30,000 megawatts of diverse generating capacity, including more than 7,000 megawatts of renewable energy. The company’s plans include growing its renewable generation portfolio to approximately 50 percent of total capacity by 2032. AEP is on track to reach an 80 percent reduction in carbon dioxide emissions from 2005 levels by 2030 and has committed to achieving net zero by 2045. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP’s family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.