Paducah municipal power system’s coal bet backfires

PADUCAH, Ky. (AP) — The Paducah municipal power system’s bet on coal has backfired, strapping businesses and residents with soaring electricity rates.

The Courier-Journal (http://cjky.it/1MiYvoN ) reports that electricity rates surged to likely the highest in Kentucky. Residential bills in the western Kentucky city are now about 60 percent higher than those of customers in the state’s four main investor-owned regulated utilities.

The small public power system’s mountain of debt was fueled in large part by an admitted over-investment in a coal mine and a brand new southern Illinois coal-fired power plant. Public outrage rose last fall when some customers were hit by surprise catch-up bills as high as $1,800.

Leather works artist Phil Phillips says his bills have doubled since 2012. He says it’s making it difficult for him to stay in business.

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Information from: The Courier-Journal, http://www.courier-journal.com

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