FRANKFORT, Ky. — The day that many power customers in Eastern Kentucky have anticipated and dreaded has finally arrived, as the Kentucky Public Service Commission this afternoon finally reached a decision Kentucky Power’s request for a rate increase.
And like much of what has happened in the rate case, the decision is complicated, with both the utility and its customers walking away with wins. While the PSC approved some rate increases, the elimination of some surcharges will mean that the average customer’s bill will actually be less.
The PSC denied Kentucky Power’s final request for a 9 percent increase. However, the commission did find that the utility is entitled to some increase. Kentucky Power’s proposal would have generated an additional $31 million for the company. The PSC’s approved rates will only bring in an additional $12 million, or about 3.5 percent.
The PSC did allow the company to raise the residential surcharge from $11 to $14. However, it only granted a portion of the energy charge increase. Kentucky Power had sought an energy rate for 10.265 cents per kilowatt hour. The PSC only approved 9.66 cents.
However, customer surcharges on bills are going down or being eliminated, which will actually bring the average residential customer’s bill down about 4 percent, state Sen. Ray Jones told EKB News.