Eastern Kentucky members dive into campaign on Kentucky Power’s rate hike

New Energy and Transition

Eastern Kentucky members dive into campaign on Kentucky Power’s rate hike

KFTC’s members in eastern Kentucky, alongside Setting a bad precedent New Energy and Transition Committee members and Kentucky Power’s rate proposal also is significant solar allies, are diving into a campaign to oppose a because of a potential precedent it could set. rate change proposal from Kentucky Power. In 2019, state legislators eliminated one-for

Kentucky Power, a monopoly electric utility that one net metering, a successful solar policy which let serves large parts of eastern Kentucky, has already rooftop solar customers receive a one-for-one kilo raised its rates twice in the past five years. Its current watt credit on their electric bills for the power they rate proposal being considered by Kentucky’s utility contributed to the electric grid, and allowed for the regulator, the Public Service Commission (PSC), rais steady growth of home-grown solar businesses and es residential rates significantly and makes it harder investment in Kentucky. for eastern Kentuckians to benefit from energy effi The Republican-controlled General Assembly ciency and rooftop solar – all in the middle of a global changed the rules in 2019 so that the PSC will de pandemic. termine, utility-by-utility, how renewable energy

Here are just a few ways Kentucky Power's customers are credited for the excess power they gen proposal puts shareholder profit over the well-being erate. of eastern Kentucky families and communities. (To Kentucky Power is the first PSC-regulated utility learn more, visit kftc.org/kentuckypower2020): to propose a change to its net metering policy, and if • Kentucky Power’s proposal punishes prospective burgeoning growth of solar in the region. How the rooftop solar customers by devaluing renewable PSC rules on the proposal will likely set an important energy in a way that would put rooftop solar out precedent for the rest of the state-regulated inves of reach for most households. tor-owned and cooperative electric utilities. • Kentucky Power’s proposal increases both the “Kentucky Power company could be tak[ing] the monthly charge and per-kilowatt charge on resi lead in moving Kentucky to solar production,” said dential customers by 25 percent, making it hardKFTC member Artie Ann Bates of Letcher County. er for eastern Kentuckians to make ends meet. “Instead, they’re moving in the opposite direction.” • Kentucky Power claims to be helping out low-income customers with a “declining block Taking action and fighting back rate” during winter months. But this block rate Given the importance of this rate proposal, and disincentivizes energy efficiency and would KFTC’s active membership in eastern Kentucky, make homes that use little or moderate amounts members and allies are fighting back. of energy pay more. The best way to help out KFTC, alongside the Mountain Association low-income customers would be to not increase (formerly known as MACED) and the Kentucky our rates at all. Solar Energy Society, is intervening in the formal le • Kentucky Power’s proposal requests a $36 million investment Kentucky Power Customers = 165,093 in “smart meters” of approved the changes would strike a real blow to the questionable value to Boyd: 24,177 Johnson: 7,174 Martin: 4,728 ratepayers. This will Breathitt: 5,168 Knott: 7,718 Morgan: 1,168 allow the utility to Carter: 8,650 Lawrence: 7,740 Owsley: 16 keep raising rates in Clay: 82 Leslie: 5,292 Perry: 14,863 coming years in order Elliott: 27 Letcher: 11,207 Pike: 32,571 to pay for that invest Floyd: 15,037 Lewis: 268 Rowan: 1,114 ment and to profit Greenup: 15,038 Magoffin: 3,055 shareholders. Source: company

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 Fitz Gerald of the Kentucky Resources Council.

Just as important, KFTC also is launching a ro bust 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 utili ty 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.