Fugate, who represents the eastern counties of Perry, Breathitt and Owsley, has been a staunch vocal advocate for East Kentuckians with the Public Service Commission since they began having hearings concerning Kentucky Power’s most recent rate hike announced by the utility company last summer. Fugate said that eastern Kentucky should not have to bear the brunt of Kentucky Power company’s profiting while the electricity is being generated out of state with coal not being mined in Kentucky. Fugate took time out of his convening of the General Assembly to share with WUKY News how pleased he was hearing that the attorney general’s office took its stance.
Action has taken place in the General Assembly by lawmakers this past week in an effort to lower electricity costs for eastern Kentuckians. District 90 Representative Derek Lewis and District 96 Representative Patrick Flannery have filed House Bill 535, also known as the Eastern Kentucky Energy Savings Act. This bill addresses affordability and reliability for eastern Kentuckians struggling with energy costs. In response to the proposed Kentucky Power rate hike hearings last summer, Attorney General Coleman submitted a brief to the Public Service Commission, which is appointed by the governor and confirmed by the senate, urging the commission to reject any increase in utility rates for its customers in Eastern Kentucky. Headquartered in Ashland with an out-of-state parent company known as American Electric Power, according to Fugate, Kentucky Power provides service in 20 eastern Kentucky counties. The AG's office relayed that Kentucky Power has some of the highest electric bills in the state despite what the office also describes as unreliable service. Attorney General Coleman informed the Commission in his brief that it was his office’s role to protect customers who have experienced rate hikes in four of the last five years. Fugate added that when factoring in all the add-on charges, rates currently stand at 18 cents per kWh as opposed to six cents in 2009. Kentucky Power’s most recent request is to hike up that rate by another 15%.
Coleman asserted in his brief to the Commission that there is no evidence that a denial of the proposed rate hike would hurt Kentucky Power, adding that the day after the company sought a rate increase, its parent company announced record earnings. Coleman stated that for generations outsiders have taken advantage of eastern Kentucky with attempts to sack its resources and drain families’ money. Fugate agrees. He goes a step further by saying that bringing back coal-fired energy plants in Kentucky and using Kentucky coal would not only boost the coal economy, but would generate more commercial customers and make it less of a burden on residents covering the cost.
The AG's office’s stance in urging the Public Service Commission to say no to all rate hikes by Kentucky Power is extremely rare, but Coleman asserts it’s a necessary step to protect Kentuckians. For a depressed economy crippled by the fall of the coal industry, adding to that significant electricity bill rate hike in eastern Kentucky could be devastating for most, according to Fugate He said Kentucky Power’s explanation for rate hikes doesn’t make any sense.
The attorney general’s office not only wants the Public Service Commission to reject all rate increases, but also calls for an audit to identify long-term solutions. Fugate said in 16 years time, eastern Kentuckians have lost thousands of jobs and population, including students. He fears electric bill hikes could be the region’s final nail.