American Electric Power CEO Bill Fehrman made more than $36 million in 2025. That makes him the highest-paid CEO of any investor-owned utility.
According to the Energy and Policy Institute, average utility CEO compensation has risen 47% since 2017. That’s outpaced both inflation and worker wage gains.
Krysti Shallenberger of the Energy and Policy Institute said it would take the average Kentucky earner nearly 600 years to make as much as Fehrman did last year.
“Everyone is struggling. And then you see this massive bill increase, this massive compensation increase, and you're wondering, who gets the benefit here?” she said. “It begs the question of, are they actually delivering what they promise to their customers, or are they just doing what they need to do for their shareholders?”
AEP affiliate Kentucky Power recently received approval to raise rates for customers in 20 eastern Kentucky counties. They pay the highest average bills of electricity customers statewide.
Scott Blake, an AEP spokesman, said the company’s board of directors uses a performance-based process to set CEO compensation. He noted that the bulk of Fehrman’s compensation is payable only if five-year performance targets are met.
“AEP’s strategic goals include execution of our long-term capital plan, system reliability, safety, regulatory outcomes, and sustained financial performance,” Blake said. “If AEP’s objectives are not achieved, the value of the CEO’s compensation would be substantially less.”
Residents and local officials testified uniformly in opposition to Kentucky Power’s rate proposal. They packed into three public meetings in eastern Kentucky communities.
They told members of the Kentucky Public Service Commission that they struggle to pay their electricity bills.
According to an interactive electricity data tool from Heatmap, Kentucky Power’s bills averaged $246 last month, the highest in the state and the region. That’s up 40% over five years, Heatmap calculated.
Kentucky Power’s 162,000 customers are paying 6% more this year and another 1% more next year.
The Kentucky PSC is considering another Kentucky Power case that would add to customers’ monthly bills. Kentucky Power and Wheeling Power in West Virginia propose a $191 million cooling tower replacement for their jointly operated Mitchell coal plant near Moundsville, West Virginia.
If the PSC approves the plan, customers would see a $4.69 monthly increase starting in 2029. The company’s West Virginia customers would pay $1.22.
The companies applied for but did not receive a grant from the U.S. Department of Energy to help pay for the Mitchell cooling tower replacement.
