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Large Energy Users Like Data Centers Support Long-Term Affordability

What Our Customers Need to Know

  • We protect existing customers by working with large energy users to ensure that costs of connecting them to the electric grid are not shifted to the broader customer base.
  • All customers benefit from the grid costs paid by large energy users. Because they bring steady demand and funding over time, the costs of running the system are shared among more customers — reducing pressure on everyone's bills.
  • Your rates may still change over time, typically driven by fuel costs, grid upgrades and broader energy market factors.
  • Regulators review these projects and approve both the rules we follow and the rates everyone pays in each state we serve.

How This Benefits You

Helps Keep Bills More Affordable Over Time
More customers sharing grid costs means lower and less frequent price increases without compromising reliability.
Strengthens Reliability in Your Area
New infrastructure built for large customers, including data centers, also improves your service.
Supports a More Modern Grid
Investments tied to large customers help expand and improve the system to serve new homes and businesses and replace aging equipment.

How You Are Protected

We signed the White House Ratepayer Protection Pledge, reinforcing our commitment to put customers first as energy demand continues to grow across our region. The pledge reflects a simple principle: as new large energy users connect to our electric system, the costs needed to serve that growth should be paid by the customers creating the demand, not by existing residential and business customers.

Bottom Line

  • Large energy users pay for new infrastructure and upgrades needed to serve them.
  • They can help reduce how fast rates might otherwise increase.
  • And they help fund a stronger, more reliable grid that benefits you.

FAQs

Data centers are required to pay the costs tied to their service, including for infrastructure built for them, so those costs are not put on other customers. As with any electric bill, prices can still change over time because of things like fuel costs and the broader energy market as well as equipment replacements and upgrades that benefit the whole system.
We welcome large customers when their projects are a good fit for the communities we serve. These projects can bring jobs, support local growth and pay for infrastructure we all rely on for everyday needs.
Yes, we plan ahead so we can keep delivering reliable service as demand for power grows. Our goal is to be ready for the future while continuing to meet existing power needs at a reasonable cost.

The Kentucky PSC has previously approved a set of protections specifically for large-load customers (150 MW or more). These protections are designed to shield existing Kentucky Power customers from financial risk and are not imposed on any other Kentucky Power customer except the large-load customer, including TeraWulf, owner and operator of Muskie Data Center planned in Boyd County's EastPark Industrial Park.

Kentucky Power is committed to providing transparency on how agreements with large-load customers are managed and to provide understanding on the safeguards in place to protect other customers. For details about the Muskie Data Center, customers can review the following:

For additional questions about the tariff or large-load electrical service, customers can contact us at info@kentuckypower.com.

Maintaining A Reliable Supply

Our Integrated Resource Plans (IRPs) ensure customers pay only for prudent investments and is updated regularly to maintain a balanced, reliable supply of energy.

View our IRP

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