Kentucky Power Co. must reimburse consumers $13.2 million after the state's Public Service Commission (PSC) sided with Attorney General Jack Conway and ruled on Thursday that the utility company charged unreasonable rates for fuel.
In addition to the refund, the PSC ruled that Kentucky Power can't collect $41 million in additional fuel costs from its clients, which was to be charged through May.
“As attorney general, I am proud to serve as an advocate for Kentucky consumers, and at a time when every dollar saved can make a difference for so many Kentuckians, I’m pleased that we are keeping this money in the pockets of ratepayers in eastern Kentucky,” Conway said. “My Office of Rate Intervention and I work hard each day protecting Kentuckians from excessive utility rates.”
The power company allegedly violated PSC orders used to figure out fuel prices for consumers. The $13.2 million refund covers money collected from consumers during the first four months of 2014.
The PSC also alleged that Kentucky Power failed to disclose all relevant information on how costs to consumers would be affected by its purchase of a West Virginia power plant.
"Transparency is critical, and indeed one of the touchstone principles in the regulatory process,” the PSC said in its ruling. “The failure of Kentucky Power to disclose this information in the Mitchell Case is a matter of great concern to the commission.”