Kentucky Power cites increased costs due to weather events as one of its justifications for an 18.3% residential rate increase.

ASHLAND — In an all too familiar announcement, “Kentucky Power has filed a comprehensive rate review with the Kentucky Public Service Commission (PSC).”? The utility is requesting to institute changes to increase its revenue by 13.6 percent.

The Notice of General Adjustment of Existing Rates shows a proposed 18.3% increase in residential service rates and an 8.6% industrial general service increase to go into effect in early 2024. Thus, the burden of the proposed rate increase would weigh heavily on residential ratepayers — amounting to an additional $35 a month for the average residential ratepayer, according to Kentucky Power’s records.

Some reasons noted by Kentucky Power for the rate increase are declining population, decreased load and increased costs due to weather events. You can find additional information on the proposed rate hike on Kentucky Power’s website. The utility is a subsidiary of American Electric Power (AEP), based in Columbus, Ohio, which earlier this year announced that a deal to sell Kentucky Power had been canceled.

If all goes as carefully crafted by Kentucky Power, this rate increase will no doubt have a negative impact on the budgets of many individuals, families and businesses in Eastern Kentucky. According to the Kentucky Energy Affordability Dashboard, ratepayers in Eastern Kentucky already pay the highest rates in the state.???

The following is a response I received from Kentucky Power on the rising cost of electricity, “A significant portion of our expenses are fixed costs that do not vary depending on the amount of electricity sold. When we lose customers, fixed costs are spread over fewer remaining customers, causing the price of electricity to increase.”??

The consistent loss of ratepayers, currently at 11,400 lost since 2008, as referenced by Kentucky Power, has frequently been cited as a justification to raise rates.??

In 2020 Kentucky Power requested a rate hike that went into effect in 2021, resulting in the following, as quoted from the PSC press release on the matter, ?“For residential customers, the PSC is authorizing a $17.50 monthly customer charge, an increase from $14.00, and an energy charge of .11032 per kWh, the average bill increases $18.59, or 15.46 percent.” This was the third billing increase for ratepayers in a five-year period. ? The increases may have been higher if ratepayers had remained silent.?

In addition, adjustments to bills are based on the cost of fuel. According to the PSC, “The Fuel Adjustment Clause (FAC) is a mechanism that permits jurisdictional utilities to regularly adjust the price of electricity to reflect fluctuations in the cost of fuel, or purchased power, used to supply that electricity.”? The FAC has hit many ratepayers especially hard when fuel prices spike.?

Unfortunately, the cost of electricity is just too high for many ratepayers.? According to the Center for Biological Diversity, the percentage of Kentucky customers that had their power disconnected increased by 228% in 2022. The national increase was 29%.? In the first 10 months of 2022, more than 52,000 Kentucky customers were shut off. In addition, the average electric bill went up 17% in the commonwealth.?

An 18.3% rate increase could equal disaster for many members of our 606 family served by Kentucky Power, especially our vulnerable populations —the elderly, sick, young and low-income.? Electrical service should be affordable and accessible to all, as opposed to only those with a certain degree of financial resources.??

There are programs such as the Low Income Home Assistance Program (LIHEAP) that provide federally funded assistance to reduce the costs associated with home energy bills for those who qualify. The funds are not unlimited though.? Most ratepayers in Eastern Kentucky do not qualify for assistance.

Make no mistake, I genuinely appreciate the hard work of those who work at Kentucky Power and the services they provide. At the same time, I am concerned with fairness to ratepayers in Eastern Kentucky.??

Backed by provisions in KRS Chapter 278, the mission of the Kentucky Public Service Commission is to foster the provision of safe and reliable service at a reasonable price to the customers of jurisdictional utilities while providing for the financial stability of those utilities by setting fair and just rates, and supporting their operational competence by overseeing regulated activities. With Kentucky Power being a monopoly authorized to provide essential services, it is crucial for citizens to partake in the process of the proposed rate increase.??

?To file public comments in this rate case, include the case number (Case No. 2023-00159 Kentucky Power) within the subject line of your email to the Public Information Officer at [email protected] and provide your full name and place of residence in the body of the e-mail; or send via mail to Public Service Commission, 211 Sower Boulevard, Post Office Box 615, Frankfort, KY 40602.

Also, public meetings will be held on this issue. The details will be released soon by the PSC.?

Teachers filled the Kentucky House gallery on April 13, 2018. (Photo by Bill Pugliano/Getty Images)

“I am firm in my belief that a teacher lives on and on through his students. Good teaching is forever and the teacher is immortal.” — Jesse Stuart.

Thirty-six years ago, I began my beloved teaching career at the now-torn-down Greenup Elementary, with my classroom being in Jesse Stuart’s old office.? During my two years there, I learned a great deal about this literary and educational giant.? His life, quotes, poems and books permeated the atmosphere of this small school.

One particular book of Stuart’s, “The Thread That Runs So True,” has helped to shape my career.? In fact, I often give this book to new teachers, always highlighting the following quote, “I thought if every teacher in every school in America — rural, village, city, township, church, public, or private, could inspire his pupils with all the power he had, if he could teach them as they had never been taught before to live, to work, to play, and to share, if he could put ambition into their brains and hearts, that would be a great way to make a generation of the greatest citizenry America ever had.”

When I consider this quote, several educators come to mind. At the top of my list is Coach Bob Sparks from Boyd County and my fourth-grade teacher at Pine Acres Elementary, Mrs. Edna Collins.

Always the encourager, Coach Sparks had the knack for bringing out the best in people. His loving guidance, kind words and goodwill left a mark not only on his students, but his colleagues as well. The long and winding line of visitors at his funeral held at the Boyd County gym bore witness to his positive influence.

Fifty years later, I still fondly recall the encouragement from Mrs. Collins. Despite my academic weaknesses upon entering her classroom, she made me feel welcome, valued, and above anything else, competent.? Her patience and determination resulted in me being academically on level by the end of the year, something I had never been before. Experiencing her love inspired my own decision to become an educator.

Coach Sparks, Mrs. Collins and many other teachers like them have helped to mold young minds and hearts, making Kentucky a better place one student at a time. We need more teachers like them.

Unfortunately, the teaching profession in Kentucky has faced many challenges resulting in shortages. To its credit, the Kentucky legislature passed a few bills during this past session to address the situation, but those are only the tip of the iceberg. Sadly, despite having the largest budget surplus in Kentucky history, funding for 5% teacher raises, as proposed by Gov. Andy Beshear, was denied by the Republican supermajority in the legislature.

?Currently, there are close to 2,000 certified educational positions open in Kentucky, with thousands more yet to be posted.? The supply of teachers is just not there to fully meet the demand, especially with the yearly 20% attrition rate.

As reported by Kentucky Education Commissioner Jason Glass during the 2017-2018 academic year, the Education Professional Standards Board (EPSB) granted 383 one-year emergency certificates. This year, EPSB approved 1,156 emergency certificates.? This trend does not bode well for quality education within our state.

Research gathered by the Center for American Progress reflects that “the teacher labor market is responsive to changes in pay just like other occupations” and that “changes in pay can affect not only teacher attrition, but also the pool of candidates choosing to enroll in teacher preparation programs.”

According to the National Education Association, Kentucky’s average teachers’ salary of $54,139 a year is 36th in the nation. The state is 44th in the country for starting teacher pay, with the average first-year teacher making $37,373 a year.

In addition, teacher pay has become less compatible with the cost of college. To compare, when I went to Morehead State University in the mid-1980s, the price of a four-year degree was around $13,000, and my beginning teaching salary in 1987 was just above $16,000.? Today the cost of a four-year degree from Morehead is close to $80,000.? UK is $126,760.? While most students receive financial aid, it is not enough. The average student loan in Kentucky is $33,300. Nationally, that amount is over $37,000.

On top of student loan payments, teachers’ take-home pay has been reduced in Kentucky due to higher pension and health care deductions leaving too few dollars to live on, making the middle-class dream less of a reality.

Jesse Stuart had it right, teachers do live on through their students.? To protect the future, the Kentucky General Assembly needs to further address what can be done to attract, retain and empower high-quality teachers, including paying them what they are worth.

Ultimately, all Kentucky students deserve teachers as good as Coach Sparks and Mrs. Collins.