Frankfort, KY. – The Kentucky Public Service Commission (PSC) has ordered Kentucky Power Co. to return a total of about $5.17 million to customers that it collected in excess of its actual costs of participation in a regional power market. In an order issued Friday, the PSC directed Kentucky Power to issue a credit to customers for the next 11 months to return the over collected amount. A typical residential customer will receive a credit of about $1.53 per month, with the amount varying depending on individual usage. Kentucky Power last month informed the PSC that, for the 12 months ending June 30, 2019, it had collected about $5.17 million more than its actual cost of market participation. The company explained that the difference was the result of a one-time adjustment made by the Federal Energy Regulatory Commission to the cost calculations used in the regional power market in which Kentucky Power is a participant. When it informed the PSC of the excess revenue, Kentucky Power argued against refunding it to customers, saying it should be retained to partially offset anticipated future increases in power market costs. The PSC rejected that argument, saying in Friday’s order that Kentucky Power had provided no evidence to support the argument that costs would increase as it claimed they would. Instead, the excess revenue should be returned to customers, the PSC said. The refunds, in form of a bill credit, are to begin November 1 and continue through September of 2020. At that time, the charge to customers for the cost of market participation will be recalculated.