2/23/2015

Kentucky Power appeals Kentucky PSC fuel case decision

FRANKFORT, Ky., Feb. 23, 2015 – Kentucky Power has filed an appeal in Franklin County Circuit Court challenging a decision by the Kentucky Public Service Commission that deemed about $54 million in fuel costs as unreasonable.

The appeal was filed Feb. 18, 2015. It seeks to reverse the Commission’s order issued Jan. 22, 2015, and also address suggestions that Kentucky Power was misleading in some of its filings with the agency regarding purchase of half interest in the Mitchell Power plant in Moundsville, West Virginia.

“The language in the order was particularly disappointing because it questioned the integrity of the information that we provide the Kentucky Public Service Commission,” said Kentucky Power President and COO Greg Pauley. “Throughout Kentucky Power’s long history in Kentucky, we have always been open, transparent and forthright in our dealings with the Commission. We take an oath of truth that we abide by whether in front of the Commission or in written material we submit and would never intentionally mislead the Commission or any government agency.”

In its Jan. 22 order, the Public Service Commission directed Kentucky Power to refund to customers $13 million in fuel costs collected during the first four months of last year through the Fuel Adjustment Clause (FAC). Those refunds were to be delivered this year through credits on customer bills in February, March, April and May. Kentucky Power also was directed to forego additional collection of an estimated $41 million in fuel costs incurred through May.

The fuel costs disallowed by the Kentucky PSC resulted from having both the Mitchell power plant and Big Sandy No.2 in Louisa, Kentucky, in operation at the same time. Costs of operating both generation units will no longer be an issue after Big Sandy Unit 2 is retired later this year. The Commission last year approved Kentucky Power’s purchase of half the Mitchell plant to meet both customer needs and EPA demands.

The Kentucky Public Service Commission allows Kentucky Power and other electric utilities to pass fuel costs through to customers. This pass through is on a dollar-for-dollar basis and reflects actual fuel and purchased power costs. Kentucky Power does not earn a profit on the FAC. The FAC is reviewed about every six months by the Commission and adjusted accordingly. At least two other electric providers in Kentucky use the same Commission-authorized methodology, which is based on Federal Energy Regulatory Commission guidance. 

“By filing this appeal, we will be able to defend and support our position and our right to recover costs that the Commission has allowed us and other Kentucky utilities to recoup for decades,” Pauley said. “The operation of both plants actually allowed Kentucky Power customers to realize $9.9 million in net cost benefits during the cold spells of 2014. Without both generating stations, Kentucky Power would not have been able to generate enough electricity to serve our customers. The Commission affirmed in its order that our purchase of the Mitchell plant represents the lowest reasonable cost alternative for our customers in replacing Big Sandy Unit 2. When faced with making such tough decisions, we always make them with the best interests of our customers in Eastern Kentucky in mind.”

Kentucky Power, with headquarters in Frankfort, Ky., provides service to approximately 172,000 customers in all or part of 20 eastern Kentucky counties. It is a unit of the AEP system, one of the largest electric utilities in the United States, with more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.

More From APCO

Take Charge

Save Money & Energy - Now & Later

Sign Up Now Pay Online for Free with Paperless Billing

Pay Online for Free with Paperless Billing

Learn more

Download our app

How We Restore Power Learn more

How We Restore Power

Visit AEP.com
Use of this site constitutes acceptance of the AEP Terms and Conditions. View our Privacy Policy. © 1996-2019 American Electric Power. All Rights Reserved.

Privacy Policy

Privacy Policy for Appalachian Power, a unit of American Electric Power (AEP)

Scope

This Privacy Policy applies only to AppalachianPower.com and the Appalachian Power customer mobile app (com.aep.customerapp.apco). Other AEP websites and apps may be governed by their own privacy policies, appropriate to the uses and needs of each. Throughout the site or app, we may provide links to resources and sites that are not part of AppalachianPower.com or the Appalachian Power customer mobile app. This Privacy Policy does not apply to those resources and sites.

Consent

By using this site or app, you consent to the terms of this Privacy Policy. Whenever you submit information via this site or app, you agree to the collection, use, and disclosure of that information in accordance with this Privacy Policy.

Information Collected

  1. Passively collected information

    During your use of this site or app, we may collect anonymous information about your visit here through the use of server logs, cookies, scripts, tracking pixels and other Web traffic tracking systems. This information is aggregated and used to improve user experience through analysis of user activities. This information is never combined with any of the personally identifiable information you may provide in your use of the features of this site or app.
  2. Personally identifiable information

    On certain forms of this site or app, you may be asked to provide information about yourself or your account with us, either to identify yourself to us or to request a service from us. In each case, we will inform you what information is provided at your option and what information is required to complete the transaction or activity you are engaged in. If you are unwilling to provide this required information, you will be unable to complete the requested transaction.

Use and disclosure of information

The information you provide to us will be used to respond to requests you may make for services. Some or all of this information may be added to your permanent account record and may be used for research purposes.

In addition, we may use elements of this information in the following situations:

  1. We may transfer the information to Appalachian Power’s affiliates and subsidiaries, unless such transfer is prohibited by law;
  2. We may transfer the information as part of a merger, consolidation, acquisition, divestiture or other corporate restructuring (including bankruptcy);
  3. We may make the information available to third parties who are providing the product, service or information that you have requested (but not your password);
  4. We may make such information available to third parties who are providing services to Appalachian Power (for example, providing the information to third parties performing computer-related services for Appalachian Power);
  5. We may use the information to communicate with you about products and services that may be of interest to you.
  6. We may disclose the information if we form a good-faith belief that disclosure of such information is necessary to investigate, prevent, or take action regarding any illegal activities or regarding interference with the operation of our site or violation of its terms of use; or
  7. We may disclose the information if we believe that disclosure is required by law or regulation or in response to a subpoena or other order of a court or other governmental agency.

Appalachian Power uses Flurry Analytics Service (provided by Yahoo) in order to improve its mobile apps. Flurry’s privacy policy governs the use of this information.

Also, Appalachian Power reserves the right to share any aggregated information (i.e., non-personally identifiable information) with any third parties for any reason, unless prohibited by law.

We will not sell, rent or otherwise disclose the information we gather about you or your account to any third party, except as outlined in this Privacy Policy.

Security

Appalachian Power takes reasonable steps to protect your personally identifiable information as it is transferred to us, through the use of Web technologies such as the Secure Sockets Layer and others. However, no Internet transmission of information is ever completely secure or error-free. In particular, e-mail sent to or from Appalachian Power may not be secure.

How to Reach Us

If you would like to update your personally identifiable information or if you have questions about this privacy policy, please contact us.

Changes to This Policy

Appalachian Power reserves the right to change this Privacy Policy at any time. If this Privacy Policy changes, the revised policy will be posted to this site. Please review this Privacy Policy before you provide any personally identifiable information through this site. Use of our web site after the posting of a revised privacy policy constitutes your consent to the revised policy.

This policy was last revised on December 13, 2017.

Close ×

Sign Up For Alerts

Subscribing to APCO alerts gives you instant notification for:

  • Billing & Payments - avoid late payments and disconnection
  • Outage Updates - find out if there's an outage at your address and when power will be back on

Win an Xbox One with Alerts!

Enroll in alerts to be eligible to win. Subscribing to I&M alerts gives you instant notification for:

  • Billing & Payments - avoid late payments and disconnection
  • Outage Updates - find out if there's an outage at your address and when power will be back on

Loading video...

×