Mayor Harold Slone speaks at Public Service Commission meeting concerning AEP rate increase
By Roberta Cantrell
BSN Editor
Recently a public hearing was held in Ashland by the Public Service Commission (PSC).
The hearing was to hear the response to Kentucky Power’s proposed rate increase.
Unfortunately, our regions lawmakers were unable to attend as the 2026 General Assembly was in session.
However, a statement was released by the Kentucky House Majority Caucus with KY State Rep. Patrick Flannery, State Rep. Scott Sharp, Sen. Robin Webb and Sen. Phillip Wheeler.
The media release stated “Kentucky Power’s latest proposed rate increases are just another result of the hostile federal energy policies implemented during the Obama and Biden Administrations. These failed policies targeted coal and fossil fuels and have created an affordability crisis across the nation. Our state is no stranger to its effects. We hear stories from constituents all the time about how increased electric bills are making it harder to keep lights on at home and cover other basic monthly expenses. These rate increases have to stop, and we remain committed to seeking solutions that provide rate relief to Kentuckians.”
The proposed rate is nearly a 15 percent increase.
“For many families, seniors and small businesses that compounding effect is a real concern,” ended the media statement by the lawmakers.
Louisa Mayor Harold Slone, who did attend the meeting said he did not attend the meeting to question the Commission’s responsibility but to ask that they fully consider the downstream impacts this increase will have on public water and wastewater utilities, and “ultimately on the citizens we all serve.”
Slone said electricity is essential for these systems.
“This means our residents are hit twice,” explained Mayor Slone. “First through increased electric bills and again through increased water and wastewater rates. This compounding effect is especially difficult for seniors on fixed incomes, working families and small businesses who are already struggling with affordability.”
The mayor also explained a rate increase as this could cause difficult decisions on whether to delay maintenance, postpone improvements or raise rates that citizens can at least afford.
The mayor asked the Commission to consider the timing, size, structure and how this rate increase will affect the full chain of public utilities.
Kentucky Power has proposed a rate hike to take effect in Spring 2026 (tentatively March 1) to cover rising operational costs, with a revised settlement proposing an 8% increase in 2026 and a 9% increase in 2027 for residential customers.
The original proposal sought a 14.9% increase, but the negotiated settlement, currently under review by the KPC aims to mitigate the impact of rising costs and declining customer base in Eastern Kentucky.
Key Details of the 2026 Rate Case are:
Proposed Increases: The initial filing requested a 14.9% hike for residential customers and 13–15% for commercial/industrial users.
Settlement Proposal: A 12% increase was proposed after public pushback, which, when combined with deferred tax liabilities, could lead to an 8% increase in 2026 and 9% in 2027.
Impact: If fully approved, the average residential bill could see significant increases, with some reports suggesting an added cost of roughly $27 per month.
Timeline: A final decision from the PSC is expected by June 29, 2026, or earlier if the settlement is accepted.
Reasons for Increase: The company cites increased costs for equipment, severe weather mitigation, and a shrinking customer base in their 22-county service area.
Public hearings have shown strong opposition due to the high poverty rates in the service area, with residents expressing concerns over affordability.