Kentucky Attorney General Russell Coleman is calling upon the Kentucky Public Service Commission (PSC) to reject any increase in utility rates for Kentucky Power’s Eastern Kentucky ratepayers.
In a brief filed on Tuesday, Coleman criticized Kentucky Power’s requests for rate hikes and underscored the need for affordable and reliable energy in the state. Kentucky law states the Attorney General’s office is required to intervene on behalf of customers in all utility rate hike requests.
The Attorney General’s position would protect customers who have experienced four rate hikes in the last five years from a double-digit rate increase. Kentucky Power customers already have some of the highest electric bills in the state, despite what is described by the AG’s office as “unreliable service.” Coleman said the latest proposal is unsustainable and would result in customers moving out of the region or even out of the state entirely.
Coleman asking the PSC to reject outright any rate increase whatsoever is extremely rare, but his office says the step is necessary to protect Kentuckians. According to the brief, there is no evidence that a denial of the proposed rate hikes would hurt Kentucky Power. Interestingly enough, the day after Kentucky Power filed its application seeking its rate increase, the utility’s out-of-state parent company, American Electric Power, announced record earnings.
“For generations, outsiders have taken advantage of Eastern Kentucky in attempts to sap its resources and drain families’ money. It’s my duty to promote affordable, reliable energy in Kentucky, and another rate increase for Kentucky Power won’t advance that goal,” Coleman said in announcing his decision.“I hope the Public Service Commission joins me on the side of Kentucky families and holds Kentucky Power accountable.”
Kentucky Power serves more than 160,000 customers in the eastern Kentucky counties that include Boyd, Breathitt, Carter, Clay, Elliott, Floyd, Greenup, Johnson, Knott, Lawrence, Leslie, Letcher, Lewis, Magoffin, Martin, Morgan, Owsley, Perry, Pike and Rowan.
The Public Service Commission is an independent agency attached for administrative purposes to the Energy and Environment Cabinet. The agency regulates more than 1,100 gas, water, sewer, electric and telecommunication utilities operating in Kentucky and has approximately 90 employees.
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