Hearing underway on Kentucky Power’s rate hike request

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Kentucky Power rate increase request hearing before the Kentucky Public Service Commission 12-6-17

FRANKFORT, Ky. (WTVQ) – The Kentucky Public Service Commission (PSC) began a multi-day hearing Wednesday on Kentucky Power’s request to adjust its base rates.

In June, Kentucky Power filed a rate review request with the PSC seeking to recover $69.6 million from customers.  A settlement reached last month and presented to the Commission for consideration lowered that request by $28.6 million to an overall increase of $34.7 million.

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Under the settlement agreement, the residential customer rate would go up approximately 9-percent.  Commercial and industrial customer rates would increase 3-to-7 percent.

This week’s hearing is for Kentucky Power’s request to ask questions and gather additional testimony before the PSC issues its ruling.  Commission members can approve, modify or reject the settlement agreement.  If approved, new rates would go into effect in mid-January.

Kentucky Power says it needs the rate increase for a chance to earn a return on equity of 9.75 percent, which the company considers a vital component to attract investment.  The company says the rate hike would provide a mechanism for it to recover 80-percent of its mandatory federal transmission expenses.

Kentucky Power had indicated that it would have to file another case immediately if the federal transmission costs were not accounted for in this case.

The hearing is scheduled to continue on Thursday.

Ashland-based Kentucky Power provides service to approximately 168,000 customers in 20 eastern Kentucky counties.

 

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Tom Kenny joined ABC 36 News in June of 2001 as a General Assignment Reporter. A native of Peoria, Illinois, he graduated cum laude with a Bachelor of Arts in Mass Communications from Western Illinois University. He currently anchors ABC 36 News at 5pm, 6pm and 11pm. Tom has more than three decades of experience in broadcast journalism. He is the only broadcast journalist in Lexington television history to be honored with a national Edward R. Murrow Award. Tom was recognized for reporting on a story that gave a rare glimpse inside the secretive world of the Federal Witness Protection Program. He has won an Emmy Award for anchoring and another for investigative reporting, exposing the deceit and potential danger of online diploma mills. Tom has ten other Emmy nominations to his credit for investigative and feature reporting. He has won Associated Press Awards for reporting and anchoring. He has won two Addy Awards for excellence in promotional writing. Tom was the first broadcast journalist in Lexington TV history to be awarded the Silver Circle Award by the National Academy of Television Arts and Sciences. It is one of the highest honors given by NATAS. It recognizes television professionals who have performed distinguished service within the television industry for 25-years or more. Tom was honored for more than his longevity, he was recognized for making an enduring contribution to the vitality of the television industry and for setting high standards of achievement. He was also recognized for giving back to the community as a mentor, educator and volunteer. Tom also has network broadcast experience in radio and television having worked as a sports reporter for ESPN, Sportschannel, NBC Sports and the Breeders’ Cup. He was also the studio host and halftime producer for CBS Radio Sports’ College Football Game of the Week and covered the NFL for One-On-One Radio Sports. Prior to joining WTVQ-TV, Tom was Vice-President of the Houston Astros Minor League baseball team in Lexington. He was part of the original management team that brought professional baseball back to the Bluegrass after a nearly 50-year absence. Tom has lived in Lexington since 1984. In that time, he has been heavily involved with dozens of charity and civic groups, with a special emphasis on helping Veterans. He can be reached at tkenny@wtvq.com. You can also follow Tom on Facebook www.facebook.com/TomKennyABC and Twitter @TomKennyNews. Just click on the links at the top of the page.