Date: 06-21-2017
Decline in customers, usage given for reason
Appalachian News-Express
Residents of the area could soon see an uptick of as much as nearly 17 percent in their electric bills as Kentucky Power is seeking a rate review due to economic factors.
According to a statement released by KY Power, it is facing challenges pertaining to the decline of customers because of the “struggling economy.” Since September 2014, KY Power has lost nearly 2,000 residential customers and nearly 450 industrial and commercial customers, resulting in a 14.2 percent decrease in electricity usage, the statement said.
In its filing with the Public Service Commission for the rate adjustment, KY Power is seeking an increase of nearly $69.6 million (12.6 percent) from customers. Revenue from residential customers currently totals $232 million, with the proposed revenue from the adjustment totaling $270 million — an increase of $37 (16.09 percent) annually. According to the statement, individual rates will vary depending on usage. Customers using 1,247 kilowatt-hours per month will see an estimated increase of $24 per month (16.8 percent) increase — nearly 80 cents per day. Rates for industrial and commercial customers could increase by eight to 15 percent, depending on usage.
The residential and commercial rates differ because, according to KY Power, it has been a longtime practice to use industrial/commercial customer revenue to supplement residential rates and keep costs down, but since commercial and industrial customers are leaving the area, residential customers must take on an increased proportion of costs, the statement said.
According to the statement, KY Power is taking steps to keep rates from increasing again which include discontinuing an employee discount program, reducing tree-trimming services by $6.8 million and investing in economic development to attract new businesses and industries.
If approved by the Public Service Commission, the rates could take effect in January 2018. KY Power will officially file its application on June 26.
