Legislation would give utility regulator more tools for safeguarding citizens, communities
PIKEVILLE, Ky. (May 30, 2018) – Attorney General Andy Beshear is once again supporting the actions of Eastern Kentucky lawmakers seeking stronger protections for utility customers before a state regulatory agency.
The legislation would give the Public Service Commission (PSC) broader authority to hold utilities more accountable when considering potential bill increases for Kentuckians.
The legislation mandates the PSC consider whether proposed or current rates are affordable for residential customers; simplifies bills by reducing the number and amount of charges that are recovered through line items and customer charges; allows the PSC to consider if a utility is providing its customers good or bad service in setting rates; and provides stronger oversight by requiring periodic management and operations audits of the Commonwealth’s largest utilities.
Beshear said he is once again joining lawmakers to push for this legislation to help hard working Kentucky families. The legislation failed passage in the 2018 General Assembly because the chair of the House Natural Resources and Energy Committee never put the measure on his committee’s agenda.
“With twice the amount of workers making minimum wage and the third slowest wage growth in the country, Kentucky families are struggling,” Beshear said. “Many have to choose between basic needs like food and medicine and ever-increasing energy costs. This legislation would require the PSC to consider affordability when contemplating rate increase requests. This is one more tool that would help ensure Kentuckians receive a fair rate.”
Beshear said his office filed testimony on affordability in the Kentucky Power/AEP rate case earlier this year when his office sought to hold the company’s increase at zero. The PSC issued a series of rulings in January resulting in an average 4 percent decrease in monthly electric bills for Eastern Kentucky families who take service from the utility.
Rep. Chris Harris, of Forest Hills, and Rep. Angie Hatton, of Whitesburg, are continuing to fight for affordable utility bills for their communities, which is why they are once again proposing greater safeguards for all citizens in PSC hearings.
“With this legislation we’re changing the rules to help consumers and reign in the utilities,” Rep. Harris said. “Protecting the public, not profits for the utilities, must be our primary focus going forward.”
“The current rates are creating hardships for most folks in Eastern Kentucky, yet the rates are allowable by the current guidelines and must be approved by the Public Service Commission,” Rep. Hatton said. “Therefore, we must change the guidelines. This legislation will allow the PSC to reject rates that customers can’t pay and requires audits of utility companies’ expenses. Our people need this if they are to survive.”
Beshear worked with the two lawmakers, along with many community and public officials in Eastern Kentucky, to hold down any rate increase in the recent Kentucky Power/AEP case.
Beshear’s Office of Rate Intervention serves as a watchdog for consumers in matters relating to health insurance, natural gas, water, sewer, electric and telephone rates. Under Kentucky law, the office is responsible for representing the interests of Kentucky consumers before governmental ratemaking agencies, concentrating on utility cases before the PSC.
Over the last 30 months, Beshear’s office helped save families over $310 million in increases to their utility bills.
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