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Kentucky Power: Overcharge in January bills was due to over-recovery

Weekday broadcast of WYMT Mountain News at 11
Published: Mar. 2, 2022 at 4:09 PM EST
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ASHLAND, Ky. (WYMT) - You might have seen an increase in your energy bill in your last payment. An official with Kentucky power said there is a reason for that.

Cynthia Wiseman, the Kentucky Power VP of External Affairs and Customer Services, explained the process of pricing within Kentucky Power.

She said the company files fuel information with the Kentucky Public Service Commission (PSC) each month, but the fuel adjustment is billed on a two month lag. This means there will typically be over/under recovery because they will not know the exact amount of electricity customers will use each month.

Wiseman said Kentucky Power used November’s energy use to calculate its January fuel adjustment factor.

Due to colder-than-normal weather, the amount collected ended up being more than the amount needed for collection.

“This over-collection is immediately put back into the next calculation,” said Wiseman. “In February 2022, we reported the $3 million in over-recovery.”

She added the over-recovery is already being reflected in customer bills for March.

“These fuel costs are used to generate electricity at our plants,” said Wiseman. “Kentucky Power makes no profit from these expenses, but it is passed through to customers, per state regulations.”

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