On Thursday, Kentuckians shared their concerns with the Public Service Commission of Kentucky at a public meeting in Ashland, warning that a 14.9% rate increase would further strain their community.
The proposed hike from Kentucky Power has residents like Suzanne Griffith worried about how it would affect people around her.
“They just can’t hardly do this anymore,” Griffith said. “I’ve talked to maw maws who are sleeping in their housecoats or bundling up the kids at night. I’ve talked to people that literally cannot pay their bills. So they’re having to move in with other relatives.”
Griffith, along with more than 100 people who attended the meeting, voiced their concerns directly to the PSC.
“Meanwhile, we have very high poverty, and we’re looking for a renaissance in eastern Kentucky,” she said. “That’s really hard when you’re asking our small businesses and our industries to pay some of the highest rates in the state.”
Kentucky Power provides service to more than 160,000 customers across 20 counties in the state. In addition to higher residential rates, the company has proposed a 13% to 15% increase for commercial and industrial customers. That possibility has small business owners like Diamond Lewis concerned about their future.
“You’re wanting to raise the rates, but here we are trying to bring businesses in to create an economy for people to stay here,” Lewis said. “If the rates are higher, if we don’t give those businesses an opportunity to come in, some help to create something, it’s just a snowball effect.”
Kentucky Power said the proposed increases are needed to continue providing reliable service throughout the region. A hearing in Frankfort is scheduled for Tuesday, and the PSC is expected to issue a final decision on whether to approve the rate increase by June 29.
“This case is really about reliability and improving reliability throughout our service area requires a rating freeze,” AEP’s Sarah Nusbaum said. “The cost for everything has gone up, the cost for the equipment and the things that we need to keep the lights on has gone up also. It’s just a reflection of how prices for everything has gone up.”
The PSC said the proposed increase in electric rates would generate an additional $95 million in revenue for Kentucky Power.