Paducah Power Reduces Cost Adjustment Rate

Paducah Power System has announced that it will decrease the utility’s Power Cost Adjustment, beginning July 1.

The utility says the PCA will drop from 1.656 cents per kilowatt hour to 1.273 cents. The decision was made at Monday's board of directors meeting as the board approved a budget for the fiscal year.

The move will reportedly return $2.1 million to Paducah Power customers.

Paducah Power’s PCA rose to a high of 3.59 cents per kilowatt hour in February 2014. Since then, it has fallen 66 percent, lowering the monthly bill for the average residential customer more than 14 percent.

“With a lot of hard work, we have managed to bring some rate relief to our customers in the past two-and-a-half-years, despite the many challenges we face every day,” said PPS Board Chair Hardy Roberts. “We know our community expects more. Our board and staff members are a part of this community. We share our customers’ expectations and are dedicated to finding the long term sustainable rate relief that we all want.”

“While we had hoped for a larger decrease in the PCA, frankly, it was a challenge to keep from raising it under the current market conditions, so we’re pleased we were able to keep it moving downward.” said PPS General Manager Gary Zheng.

The board’s action means residential customers will pay a total kilowatt hour rate of 12.426 cents.