www.kftc.org | September 9, 2020
Balancing the Scales | 13
New Energy and Transition
Eastern Kentucky members dive into campaign on Kentucky Power’s rate hike KFTC’s members in eastern Kentucky, alongside New Energy and Transition Committee members and solar allies, are diving into a campaign to oppose a rate change proposal from Kentucky Power. Kentucky Power, a monopoly electric utility that serves large parts of eastern Kentucky, has already raised its rates twice in the past five years. Its current rate proposal being considered by Kentucky’s utility regulator, the Public Service Commission (PSC), raises residential rates significantly and makes it harder for eastern Kentuckians to benefit from energy efficiency and rooftop solar – all in the middle of a global pandemic. Here are just a few ways Kentucky Power's proposal puts shareholder profit over the well-being of eastern Kentucky families and communities. (To learn more, visit kftc.org/kentuckypower2020): •
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Setting a bad precedent Kentucky Power’s rate proposal also is significant because of a potential precedent it could set. In 2019, state legislators eliminated one-forone net metering, a successful solar policy which let rooftop solar customers receive a one-for-one kilowatt credit on their electric bills for the power they contributed to the electric grid, and allowed for the steady growth of home-grown solar businesses and investment in Kentucky. The Republican-controlled General Assembly changed the rules in 2019 so that the PSC will determine, utility-by-utility, how renewable energy customers are credited for the excess power they generate. Kentucky Power is the first PSC-regulated utility to propose a change to its net metering policy, and if approved the changes would strike a real blow to the burgeoning growth of solar in the region. How the PSC rules on the proposal will likely set an important precedent for the rest of the state-regulated investor-owned and cooperative electric utilities. “Kentucky Power company could be tak[ing] the lead in moving Kentucky to solar production,” said KFTC member Artie Ann Bates of Letcher County. “Instead, they’re moving in the opposite direction.” Taking action and fighting back Given the importance of this rate proposal, and KFTC’s active membership in eastern Kentucky, members and allies are fighting back. KFTC, alongside the Mountain Association (formerly known as MACED) and the Kentucky Solar Energy Society, is intervening in the formal le-
Kentucky Power’s proposal punishes prospective rooftop solar customers by devaluing renewable energy in a way that would put rooftop solar out of reach for most households. Kentucky Power’s proposal increases both the monthly charge and per-kilowatt charge on residential customers by 25 percent, making it harder for eastern Kentuckians to make ends meet. Kentucky Power claims to be helping out low-income customers with a “declining block rate” during winter months. But this block rate disincentivizes energy efficiency and would make homes that use little or moderate amounts of energy pay more. The best way to help out low-income customers would be to not increase our rates at all. Kentucky Power’s proposal requests a $36 Kentucky Power Customers million investment in “smart meters” of Boyd: 24,177 Johnson: 7,174 questionable value to Breathitt: 5,168 Knott: 7,718 ratepayers. This will Carter: 8,650 Lawrence: 7,740 allow the utility to Clay: 82 Leslie: 5,292 keep raising rates in Elliott: 27 Letcher: 11,207 coming years in order Floyd: 15,037 Lewis: 268 to pay for that investGreenup: 15,038 Magoffin: 3,055 ment and to profit shareholders. Source: company
= 165,093 Martin: 4,728 Morgan: 1,168 Owsley: 16 Perry: 14,863 Pike: 32,571 Rowan: 1,114
Kentucky Power Service Area gal proceedings that regulated utilities like Kentucky Power must go through when trying to change their rates. KFTC, Mountain Association and KYSES are serving as “joint intervenors” in this rate case, which will allow them to formally weigh in before the PSC and ensure that the interests of residential and small commercial customers in the Kentucky Power service territory are heard and valued in the case. They are represented by long-time ally Tom FitzGerald of the Kentucky Resources Council. Just as important, KFTC also is launching a robust organizing strategy to make sure that Kentuckians’ voices are heard in this rate case. The PSC always accepts comments from the public on rate cases, and public outcry has helped halt some of the worst utility rate proposals in the past. Kentucky Power customers, or anyone who cares about energy democracy and clean, accessible energy in Kentucky, are encouraged to take action by submitting a public comment to the PSC before November 18. Visit kftc.org/kentuckypower2020 to learn more about the case and for a simple way to submit comments. Read Kentucky Power’s proposal and case filings at https://psc.ky.gov/PSC_WebNet/ViewCaseFilings. aspx?Case=2020-00174.
