To: Kentucky Public Service Commission
Kentucky Public Service Commission: Deny KEP's Rate Increase
Tell the Kentucky Service Commission to reject Kentucky Electric Power's (KEP)proposed 12% rate increase. KEP says this will let them complete their purchase of half interest in Ohio Powers' Mitchell power plant, located in Moundsville, WV. But both KEP and Ohio Power are subsidiaries of AEP. Selling power generated at this plant to Kentucky customers would cost AEP nothing. And KEP has already been granted a 17% increase in their rates. Increasing KEP's rates will do nothing but further enrich AEP at the expense of Kentucky Customers.
Why is this important?
Kentucky Electric Power has announced it will seek a 12% rate increase to complete the purchase of half interest in the Mitchell Power Plant that is located in Moundsville, WV. This plant is currently owned by Ohio Power. Both KEP and Ohio Power are subsidiaries of American Electric Power. In effect, AEP is selling itself half interest in a power plant it already owns. AEP has already secured a 17% increase in the rates paid by its Kentucky customers so it can afford to pay itself back. Neither the 17% increase nor the sought after additional 12% increase are warranted. AEP owns that power plant outright, just as it owns both corporate entities involved in the sale of the half interest in the Mitchell power plant. It will cost AEP nothing to sell power from that plant to customers in Kentucky. I'm asking the KPSC to reject this increase.