Kentucky Power files rate case to recover costs of Mitchell Plant

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Kentucky Power Co., a unit of American Electric Power (AEP), will file a base rate case with the Kentucky Public Service Commission (KPSC) to recover costs associated with the anticipated transfer of 50 percent of the ownership of two power generating units from AEP Ohio’s Mitchell Power Plant near Moundsville, West Virginia, to Kentucky Power.

The filing calls for an increase in revenue of $114 million over existing rates and asks for a general rate increase for Kentucky Power customers of 23.39 percent.

While the overall impact on revenue is about 23 percent, the impact on residential customers will be about 31 percent due to the way revenues are allocated among customer classes based on usage, service charges and other factors. There are two mitigation measures in the filing that could effectively lessen the overall rate impact from 23 percent to 12 percent and the residential impact from about 31 percent to about 20 percent.

Kentucky Power is an operating unit of American Electric Power and provides electricity to about 173,000 customers in all or parts of 20 eastern Kentucky counties.

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