Community feels ‘powerless’ facing Kentucky Power rate increase

PIKEVILLE, Ky. (WYMT) — The Kentucky Public Service Commission has approved a rate increase for Kentucky Power, drawing criticism from residents already struggling with high utility costs.

The PSC issued a final order Saturday granting a 5.87% rate increase in the first year, rising to 6.63% in 2027, which is less than Kentucky Power’s requested increase of nearly 15%.

Mike Johnson, the owner of Johnson’s Home and Garden in the city of Coal Run, said residents often pay their power bills in his business, since he is a retailer that offers the service. He said he has recently seen customers receive bills as high as more than $1,000.

“A lot of these people are on fixed incomes,” Johnson said. “And I know it’s hurting when they have to pay it. So they’re sacrificing groceries, maintenance on their vehicles, maintenance on their house, clothes.”

Johnson questioned why the company was allowed an increase, saying they are placing undue burdens of their own decisions on the people of Eastern Kentucky.

“I don’t know what they’re justifying it with,” he said. “I know that they said some of the storm damage and then they’re saying that they’re tearing down a power plant, and all this, and some of that — that’s not my responsibility.”

Johnson said he does not believe the current three-person commission can adequately represent the best interest of the state, particularly Eastern Kentucky and its small businesses.

“I think that they need more people — that you’ve got a quorum that has to be there,” Johnson said. “You know, if you’ve got 15 people you have to have at least 12 or whatever. And have it spread out.”

Senator Brandon Smith announced legislation Monday addressing the commission. Senate Bill 8 would expand the PSC from three members to five. Under the bill, three members would be appointed by the governor and two by the auditor of public accounts. No more than two members could work in the same profession, and no more than three could share the same political party.

Johnson said the damage is done for this rate increase but some type of action along those lines is needed to protect residents from future hikes.

“I don’t know where they’re supposed to turn to,” Johnson said.

Community members told WYMT they feel powerless in the face of continued increases, reporting inaccurate readings, large bills for vacant homes, and concerns about how the bills are calculated.

Some customers reported receiving bills that reflected different costs for homes in the same neighborhood.

“I have several properties that AEP service. I have looked at every bill for every month. I have noticed that all nine of my accounts are charged at different rates. I’m not sure why, I would assume that all the homes we have that are in Pike County would be charged the same rate per Kilo-Watt Hour,” Pike County business owner Brandon Hurley shared. “I have called and complained and asked for an explanation. AEP has kept me on the phone for hours waiting. No valid explanations of why these homes are charged at different rates and eventually the line was disconnected. I do believe that AEP is not honest with their rates and the rates are at random. Two of our homes are next to each other. I would at least expect those rates to be the same.”

WYMT reached out to Kentucky Power about the concerns. They share this statement:

“Kentucky Power takes billing accuracy very seriously. Our meters are regulated, routinely tested and subject to oversight to ensure customers are billed only for the electricity they use. Winter bills are typically higher than in other times of the year, especially when there’s weeks of extremely cold weather as we experienced this winter. As we mentioned in an email we delivered to customers on Monday, customers using more electricity than normal is a problem in our service territory. In the coming weeks, we will be reaching out to high-use customers to learn more about their energy usage with plans to offer ways we can help.

There is no indication of systematic billing issues. Customers who have questions or concerns are asked to contact us either by calling or contacting us through direct message on Facebook. In many cases, differences customers notice are tied to usage levels, weather impacts, billing cycle length or normal seasonal variation — what’s driving high usage typically depends on the type of home, the number of people in the home, the method(s) used to heat the home, appliances in the home and the energy efficiency of the home. We are currently asking customers with electric heat to sign up for our EnergyAdvantage at Home program, which offers a free home assessment, upgrade options and rebates – for those who qualify, this program can help improve your home’s energy efficiency which will provide long-term cost savings. We hope you will help us encourage your viewers to apply.

In addition to rate cases being very transparent and public processes, Kentucky Power has proactively kept customers informed about the rate case and presented in several ways what the rate case was about: maintaining safe, reliable electric service while planning for the future of our region and doing everything we can to keep costs as low as possible. We understand that any increase in monthly bills raises concerns, especially following a rate case decision. We are committed to helping customers understand both their usage and the components of their bill, and, again, we encourage anyone with questions to contact us so we can walk through their account in detail.”

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