Under Thursday’s Kentucky PSC order, East Kentucky Power customers across 89 counties will see about a $5 a month increase on their bills, effective May 1.
It is the first East Kentucky Power rate increase since 2021. Under a November settlement reached with the office of Attorney General Russell Coleman, the utility agreed to not file another rate case for three years.
However, the Kentucky PSC modified the settlement. East Kentucky Power President and CEO Don Mosier said in a statement that another rate increase could be coming sooner.
“We are disappointed the commission did not approve the settlement’s symmetrical earnings mechanism, which would have provided future financial stability as EKPC builds to meet the needs of our members,” Mosier said.
Mosier said that could be necessary to support capital spending plans. East Kentucky Power plans to add 1,000 megawatts of generation by 2031.
That includes a new natural gas plant in Pulaski County and solar facilities in Marion and Fayette counties.
The Winchester-based not-for-profit utility also plans to convert its Spurlock and Cooper coal plants to run on either coal or natural gas.
“These new and modified generating resources are necessary so EKPC can continue to reliably meet growing electricity consumption by the homes and businesses we serve,” Mosier said.
The PSC said it denied the symmetrical earnings mechanism out of fear it could cause large bill increases without customer notification or oversight from the PSC.
East Kentucky Power’s rate case is the last of three to be decided by the Kentucky PSC since the beginning of the year.
The PSC previously approved rate increases for Louisville Gas & Electric and Kentucky Utilities and Kentucky Power.
LG&E and KU is a financial supporter of WEKU.
