Kentucky Power files for approval of alternative coal rate term program
Kentucky Power recently filed with the Kentucky Public Service Commission for approval of its Coal Plus program, which would give the company more flexibility in designing special contracts with coal companies.
“Coal Plus will include a special provision designed to give coal companies greater short-term flexibility to take advantage of different rates currently in our terms and conditions approved by the Public Service Commission,” Kentucky Power President Matt Satterwhite said. “We want to help spur economic development because that is how we can help revitalize our communities.”
If approved, the plan could become available to coal companies within 30 days.
Revisions to Kentucky Power’s Economic Development Growth Grants program, which provides grants to support economic development, will make coal companies eligible for award. The Kentucky Economic Development Surcharge approved by the Kentucky Public Service Commission in 2015 funds the program. For every 15 cents gathered each month from customers, company stockholders match the customer contributions dollar for dollar.
In 2015, coal made up 87 percent of the state’s electricity generation, which marked a four percent decrease from 2014. Generation from natural gas in the state rose to seven percent in 2015 from three percent during the previous year.
