ASHLAND, Ky. — 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 its plan for providing reliable service to customers, and the PSC will determine whether the request is fair, just, and reasonable for its customers. To learn more about utility rate cases visit, www.KentuckyPower.com/rates.
