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Kentucky approves rate increase but not wind power
- 13 years ago (2010-06-29)
- David Flin
The Kentucky Public Service Commission in the USA has approved an electricity rate settlement that will result in a 17 per cent rate rise for typical residential electricity customers of Kentucky Power Company. Even with this rate increase, these customers will still be paying some of the lowest electricity rates in the country. Before this increase, the company spent more supplying the electricity than it received in payment.
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The Commission also voted against a request by Kentucky Power to add 100 MW of wind power from an Illinois wind farm to its generation mix. The company had argued that although the state does not yet require it to include renewable energy in its portfolio, such a requirement is inevitable. The Commission rejected the wind power purchase, but commended Kentucky Power’s interest in renewable energy. The Commission said that it could not approve a power purchase that is not immediately needed and is more expensive than current sources.
The settlement grants Kentucky Power an annual revenue increase of $63.7 million, about 12.5 per cent, and about half the amount the utility originally sought. Kentucky Power’s residential customers have not had a rate increase since March 2006. The residential rate per kWh will rise from 7.19 cents to 8.59 cents, a figure that includes an environmental surcharge previously assessed separately. The new rates take effect June 29, 2010.
The settlement calls for increased spending on vegetation trimming, the Commission said, noting that some customers believed that power outages during a snowstorm in December 2009 were made worse by insufficient trimming.