AG, area state legislators oppose proposed Kentucky Power sale
By TONY FYFFE
BSN Editor
FRANKFORT – Kentucky Attorney General Daniel Cameron and a group of state lawmakers from Eastern Kentucky gave a thumbs-down to the proposed sale of Kentucky Power to Liberty Utilities, saying his office opposes the move.
The opposition came just days before the Kentucky Public Service Commission held a public hearing Monday on the proposed sale.
Liberty is a subsidiary of Canadian energy giant Algonquin Power & Utilities, with a business plan that emphasizes renewable energy, bringing concerns to many that higher monthly bills for consumers could follow. According to the U.S. Energy Information Administration, Kentucky, a state rich in natural resources, ranks 30th in the nation in cost of electricity prices for residents while California, a state boasting some of the highest renewable penetration rates in the country, has the 4th highest cost of electricity for residents.
“Utility rates have skyrocketed in 2022,” Cameron said at a press conference Thursday in Frankfort. “Kentuckians are paying more than ever to power their businesses and to keep the lights on at home. This is especially true for many in Eastern Kentucky, where the price of electricity often exceeds rent or mortgage costs. Because the sale of Kentucky Power to Liberty Utilities could potentially worsen these trends, our office is opposing it.
Cameron said citizens and businesses in Eastern Kentucky “deserve reliable, reasonably priced electricity.”
“I believe that the proposed sale is unlikely to meet these needs, especially given that the purchasers have a stated mission of ‘greening the fleet’ by replacing existing coal and natural gas generation with renewable energy,” he said. “As recent events have shown, coal and natural gas play a vital role in ensuring dependable and affordable rates and therefore must play a role in the future of Kentucky energy. I am aware, of course, of the purchaser’s promise to reduce rates in the short term. I appreciate the willingness to do so, however, the concern over long-term rate increases continues to be a sticking point. My team has expressed these concerns to the PSC and in meetings with Liberty Utilities.”
Cameron said that if the PSC approves the sale, “I hope it will make whole the thousands of Eastern Kentuckians who for years have struggled with unreasonably high rates and chronic underinvestment in their utility infrastructure.”
“Our experts state that the proposed sales price includes a $585 million premium for Kentucky Power,” Cameron said. “The bulk of that overpayment would be better spent on rate credits for Eastern Kentuckians.”
Also on Thursday, members of the bipartisan Kentucky Mountain Caucus held a press conference expressing their opposition to the potential sale.
Lawmakers from the mountains say they are worried the sale will result in even higher energy bills for residents.
“As co-chair of the Mountain Caucus and the senator representing the 30th District, I have one job and one job only: protect the residents of Eastern Kentucky,” Sen. Brandon Smith, R-Hazard, said. “At a time when our people are receiving historically high energy bills, something has to be done to make this right. If I have to stand out here 100 days in a row, I’ll do that.”
Smith is chair of the Senate Standing Committee on Natural Resources and Energy.
The Mountain Caucus issued a letter to the PSC urging its consideration of how critical Kentucky coal and rich fossil fuel industry is to Kentucky and how Eastern Kentucky must fit into the business model of energy providers.
“This letter to the PSC isn’t about being against a power company, it shows how important power is to our region,” Smith said. “A company coming forward with a heavy push on renewable energy gives me pause. How do you put that many new megawatts of renewable energy into the region without displacing coal, oil and gas, which are proven stable sources of power? We do not want this sale to further exacerbate the struggles our region is facing.”