Kentucky AG’s Office of Rate Intervention secures $143 million in benefits
Benefits for Kentuckians related to Liberty acquisition of Kentucky Power
FRANKFORT, Ky. (WTVQ/PRESS RELEASE) – The Kentucky Attorney General’s Office announced the Office of Rate Intervention (ORI) secured over $143 million in benefits for Kentuckians related to Liberty Utility Co.’s (Liberty) acquisition of Kentucky Power Company (Kentucky Power) from Kentucky Power’s parent entity, American Electric Power Company, Inc. (AEP).
“Our office went before the PSC to ensure Eastern Kentucky electric utility ratepayers benefitted from Liberty’s acquisition of Kentucky Power from AEP, and we are pleased that our efforts resulted in over $143 million in benefits for Kentucky ratepayers,” said Attorney General Cameron. “We know rising utility bills have strained the budgets of many Kentuckians, and we appreciate that the PSC adopted modifications to create savings for Kentucky ratepayers before authorizing the sale of Kentucky Power.”
According to the AG’s office, in January, Liberty, Kentucky Power, and AEP jointly filed an application before the Kentucky Public Service Commission (PSC), in which Liberty, a subsidiary of Canada’s Algonquin Power & Utilities Corp., proposed the acquisition of Kentucky Power from AEP.
The AG’s office, along with others intervened and secured over $143 million in benefits for approximately 165,000 electric utility ratepayers in 20 Eastern Kentucky counties.
On Wednesday, May 4, the PSC issued a final order approving Liberty’s proposed acquisition of Kentucky Power with modifications resulting from arguments made by the Attorney General’s ORI and the Kentucky Industrial Utility Customers, which were supported by a bi-partisan coalition of state legislators from the Mountain Caucus. In its order the PSC:
- Reduced transmission costs for Kentucky ratepayers by $30 million.
- Ensured Kentucky Power ratepayers do not pay for over $43 million in damage repairs resulting from Kentucky’s 2021 winter storms.
- Secured $40 million in Fuel Adjustment Credits for Kentucky Power ratepayers. Kentucky Power’s average residential customer will receive a monthly credit of $32.72 during the winter months and $1.40 during non-winter seasons.
- Required Kentucky Power to pay 50% of the carrying cost charges on the Big Sandy Decommissioning Rider, charges that cannot be collected directly or indirectly from ratepayers.
To view a copy of the PSC’s order, click HERE.