Kentucky Power's Request for Another Rate Increase: A Controversial Move?
A controversial move by Kentucky Power has residents questioning the fairness of their utility bills. The utility company, already under scrutiny for allegedly overcharging rural mountain residents, is now seeking permission to cover half the costs of a $191 million cooling tower construction project at a West Virginia coal-fired power plant it co-owns. This request could result in an additional $4.59 on the average customer's bill by 2029, on top of the extra $26.40 per month already sought in a separate rate case. But here's where it gets controversial...
The cooling tower project is a significant undertaking, aiming to replace a 55-year-old structure with a weakened concrete shell. While the company claims smaller, temporary rate impacts during construction, the combined increases could leave Kentucky Power customers facing over $30 extra on their monthly bills in three years. This is particularly concerning for one of America's most impoverished regions, which already pays the highest utility rates in the state.
The tension surrounding Kentucky Power's interest in the 1,560-megawatt Mitchell Power Plant near Moundsville, West Virginia, has been ongoing for over a decade. The plant does not employ Kentucky residents and does not burn state-produced coal, leading to opposition from then-Attorney General Daniel Cameron in 2021. However, the Kentucky Public Service Commission (PSC) 'reluctantly' approved Kentucky Power's request to reinvest in the aging plant last year, citing the utility's failure to plan for and acquire alternative power sources.
But this is where it gets even more controversial... Attorney General Russell Coleman has intervened, calling on the PSC to deny the company's rate hike request outright, claiming Kentucky Power is taking advantage of ratepayers. The company has applied for a U.S. Department of Energy grant to help cover the costs, but it's unclear how this would impact the total bill.
Kentucky Power serves approximately 165,000 customers in 20 eastern Kentucky counties, and it's important to note that the company's request to rebuild the cooling tower is still up to the PSC, a three-member panel appointed by the governor.
And this is the part most people miss... Kentucky Power has also taken measures to lower the impact of winter's unseasonably cold temperatures on power bills. The utility filed a case seeking to spread out an extra $5 million in natural gas fuel costs across multiple billing cycles, which could lower the average residential customer's bill by $11 next month. However, a bill making its way through the General Assembly would allow utilities like Kentucky Power to spread out fuel surcharges by as much as a year.
So, what do you think? Do you agree with Kentucky Power's request for another rate increase, or do you think they're taking advantage of ratepayers? Share your thoughts in the comments below and let's discuss this controversial issue!
