Public Service Commission Chair Explains Kentucky Power Rate Review

The Kentucky Public Service Commission advanced review of a major rate request from Kentucky Power on December 15, convening a regional public comment meeting in Hazard as part of a broader process that could reshape electricity bills across Perry County. The utility asked for a near 15 percent increase for residential customers and roughly 13 to 15 percent for commercial accounts, a proposal that has prompted public concern because Kentucky Power service territory already records some of the highest electric rates in the state.

Commission chair Angie Hatton addressed the practical challenges regulators consider when assessing the request. She noted the difficulty of maintaining infrastructure in rugged terrain and the resulting expense, saying, "Kentucky Power does have a really tough territory. The mountainous terrain, it’s difficult to maintain right of way and prevent outages and that infrastructure gets expensive. And so it is a really tough area to provide electricity. They are the highest electric rates in the state. So people are concerned and I know they are."

Hatton emphasized the commission's dual responsibilities to consumers and utilities as it conducts hearings and technical review. "We are supposed to make sure that the rates aren’t exorbitant, that they are as reasonable, as low as we can possibly keep them, but we also have to make sure that power is reliable and that when you go to turn on your power switch that there’s power there. We have to make sure that the utilities interests are also included and that, you know, they have to have the money that they need to operate."

The PSC regulates more than 1,000 utility companies and has scheduled a multi day informal conference after Kentucky Power filed a motion to explore a possible settlement. That process will include technical analysis of costs, infrastructure investments, and projected reliability outcomes, and it allows regulators to consider negotiated adjustments before issuing a final decision.

For Perry County households and small businesses, the review will determine whether bills rise significantly or whether the commission can constrain increases while ensuring continued service reliability. The December 15 meeting gave residents an opportunity to register concerns directly with regulators as the PSC continues its deliberations.