Kentucky Power Company, a subsidiary of American Electric Power, has filed a base rate case with the Kentucky Public Service Commission (PSC) seeking $123.6 million in rate relief from its customers.
If approved by the PSC, the bill for a typical residential customer using 1,427 kilowatt hours of electricity per month will rise from the current price of $114.57 to $154.62 (or from 8.03 cents per kilowatt hour to 10.84 cents per kilowatt hour) — an increase of 34.95 percent. The company is asking the PSC to make the new rates effective Jan. 29. However, the PSC is likely to suspend that request and make any rate changes effective July 1.
“The increased costs of doing business, including those for operations, safety, equipment materials, supplies and labor — not to mention the ever-increasing costs of meeting environmental and regulatory obligations — have all risen since our last rate case. We cannot sustain the reliable level of service that our customers expect with our current rate structure and that has necessitated this filing,” said Tim Mosher, president and COO of Kentucky Power.
The rate increase is the first the company has requested since September 2005.
Kentucky Power is an operating unit of American Electric Power and provides electricity to approximately 175,000 customers in all or parts of 20 eastern Kentucky counties. The company is headquartered in Frankfort. AEP’s headquarters are in Columbus, Ohio.