Residential customers will see an increase of less than $5 on their monthly bills starting early next year. According to the terms of the settlement, East Kentucky Power won’t seek another rate increase for three years.
The Winchester-based company has 570,000 customers across 89 counties.
The Kentucky Public Service Commission has a hearing scheduled to consider the settlement on Dec. 8 in Frankfort.
In September, the commission denied a motion by a group led by the Appalachian Citizens Law Center to intervene in the case. It said the attorney general’s office adequately represents the interests of residential customers.
The group, which also includes Kentuckians for the Commonwealth, Kentucky Solar Energy Society and the Mountain Association, is a participant in other rate cases before the PSC.
Kentucky Power is seeking a 15% rate increase across its 20-county service territory in eastern Kentucky. It is also seeking to continue investment in the Mitchell coal plant in West Virginia beyond 2028.
Louisville Gas & Electric and Kentucky Utilities are also seeking a rate increase.
The companies cite inflation, high interest rates and increased electricity demand as reasons for raising rates.
LG&E and KU and East Kentucky Power are planning billions of dollars of new generation, primarily natural gas. Both anticipate increased demand from data centers.
Kentucky Power’s residential customers have some of the highest bills in the region. If the Kentucky PSC approves its proposed rates, the average bill could exceed $200 a month.
