WHITESBURG, Ky. -- Eastern Kentuckians soon may see their monthly utility bills go up by more than twenty dollars, if a proposed rate increase by Kentucky Power is approved by the state Public Service Commission.

Critics say the move would hurt already struggling residents and put energy-efficient options such as rooftop solar out of reach for communities.

This would be the third rate increase the company has proposed in five years.

Amber Bailey, a Letcher County resident who works as a server, said when COVID-19 began spreading in March, she pocketed $350 a week.

Since the pandemic, business has dried up and her income has been cut in half and she struggles to pay her bills.

"Why is the utility company asking for more money when we're not able to do basic bill pay right now?" Bailey inquired. "A lot of it has to do with COVID. I mean, we were already so hard hit by the closing of all the mines, and now it's gotten even worse."

Kentucky Power said it needs the rate hike to help pay for a $36 million dollar investment in smart meters.

The proposal does include bill forgiveness on accounts that were more than 30 days late as of May 28.

Anyone can comment on the issue at one of the virtual public hearings the Public Service Commission is hosting on Friday Nov. 13 and Monday Nov. 16, or they can email the commission at psc.info@ky.gov.

Along with a 25% rate increase, the new proposal calls for gutting net-metering, the one-for-one kilowatt credit on electric bills for solar customers.

Chris Woolery, residential energy coordinator for the Mountain Association, said the move would discourage businesses and local governments in the region from investing in rooftop solar, and make it harder for residential customers to reduce their energy bills.

"Rooftop solar is one of the few things that eastern Kentuckians have left accessible to respond to these increasing bills and consistent rate changes," Woolery contended.

Woolery believes the utility's proposal is unfair to the more than 165,000 eastern Kentucky residents who rely on Kentucky Power, especially as households try to stay afloat amid the economic depression from the pandemic.

"This is not the time to put the burden that should be on the investors of utilities, on the backs of eastern Kentuckians," Woolery asserted.

Kentucky Attorney General Daniel Cameron's office recently submitted a testimony on the issue. In a written statement, a spokesperson for the Attorney General said the Attorney General's Office of Rate Intervention continues to represent Kentuckians in matters related to utility rates, and said the testimony strongly opposes Kentucky Power's proposed rate increases and argues that Kentucky's non-solar utility rate payers should not have to subsidize the operational utility costs of solar participants.

Critics disagree with the Attorney General's position that non-solar customers subsidize solar customers, and argue the Attorney General's opposition to the rate hike isn't strong enough.



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This article was produced by Resource Rural.
Broadcast version by Terri Dee for Kentucky News Connection reporting for the Resource Rural-Public News Service Collaboration

Anna Carey jokes that she might like animals more than people, depending on the person. Her affinity for four-legged companions has kept her involved as special projects manager for the Leslie County Fiscal Court, the region’s municipal government that also manages the community animal shelter.

After experiencing an animal overpopulation boom following the pandemic, the rural shelter enclosed an outdoor slab to create more usable space for the dogs and cats they house. That part of the shelter, as well as the lighting throughout the facility — were ripe for efficiency upgrades. Since the county faces an increasingly tight budget, Carey said it made sense to find ways to save money wherever possible.

When she was approached by the Mountain Association about a grant opportunity that would allow the county to install solar panels on the shelter at a fraction of the full-price cost, and save money on future energy costs, she proceeded without hesitation. Carey worked with them as well as The Nature Conservancy and the Appalachian Solar Finance Fund to secure grant funding that collectively totaled more than $90,000 for the $112,000 project. The Leslie County Fiscal Court only had to contribute $20,000.

The county will also be able to obtain a tax credit from the federal government for this project, thanks to the Inflation Reduction Act, making the final project cost for the county essentially zero. 

“It just makes economic sense for the county,” Carey said about the minimal contribution the county would have to make. “It would decrease their bills and we could hook it up to batteries. And it would offer more long-term resiliency.”

“It’s a very clear savings. We’re in the final stages of it and the installer said that he can already see the consumption we need from the power company is going way down,” Carey said, noting that the Mountain Association helped them “basically do everything” throughout the process.

The solar installer programmed the system to switch from grid usage to battery usage during peak periods of energy consumption. With this feature the shelter can avoid being charged higher demand rates from the utility company. The shelter expects to save $5,000 in electricity costs annually.

“That’s super smart,” Carey said. “When they’re charging us the most, we can use the sun.”

Carey says that one of the most gratifying elements of the solar installation is the fact that the county’s financial contribution to the project came from coal severance funds. Those funds are accrued through taxes imposed on coal mining.

Historically Leslie County’s economy was fueled by coal. In a community that once relied so heavily on the coal industry, clean energy can be a touchy subject. Carey thinks that once people see how much money the county saves that it can put into other things for the community that this solar project and any that come in the future will be readily welcomed. It’s also an example of how the region can continue its legacy of energy production and one more way historic coal revenue contributes to its continued energy security today. 

She also appreciates that this solar installation was an example of the county testing a new solution. The cost to the county was low, the benefits and savings could be significant, and it could end up being a case study for the county on reducing costs elsewhere at other municipal buildings. 

“We’re lucky. I don’t know how we got so lucky,” Carey said of receiving the grant funding. “It’s the fiscal court’s job to be fiscally responsible. So, we’re doing our job. Sometimes it’s that simple.”


This article was produced by Resource Rural.

Wisconsin's largest utility provider is seeking approval for a new gas plant to help meet growing electricity demand, but a new report argues there are better ways to create a more reliable energy grid.

Data centers are among the many reasons there is added pressure on the nation's power grid. The nonpartisan think tank Energy Innovation said it has set off panic, with talk of slowing the pace of coal plant closures and spurring new natural gas plant development.

Sara Baldwin, senior director for electrification at Energy Innovation, hopes decisionmakers do not suddenly abandon the transition to renewables.

"The report points to the fact that wind and solar and battery prices have all come down substantially over the last few years," Baldwin pointed out. "And in many cases, have exceeded the forecast for their cost declines."

Natural gas burns cleaner than other fossil fuels, but the authors said quickly pivoting to gas now would result in too many long-term costs. Baldwin acknowledged wind and solar will not do it alone, but using a range of renewables, along with low-risk supplemental sources, aids reliability. The company We Energies said its proposed plant in Kenosha County is part of a long-term vision, including renewables and the end of coal use.

One supplemental energy source the report recommends is better management of the power already being generated, incentivizing people to adjust their energy use during peak times. Researchers recognize it might be hard to motivate enough people to sign on. While there is not a clear consensus about how to move forward, Baldwin noted the news isn't all that bad.

"We are not in an energy emergency," Baldwin said. "We actually have time to do this in a very pragmatic and thoughtful way and avoid some of the fearmongering that we see right now."

She added grid operators and utilities would be well served to help dispel long-standing myths about renewables. Baldwin thinks they should also remain focused on removing barriers to plugging clean energy sources into the grid, noting there is still a backlog of development ready to power up homes and businesses.

As for the We Energies proposal, state regulators could decide its fate in the coming months.


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Small businesses in Arizona are feeling the impact of the sudden federal pause on clean-energy grants.

One of those businesses is the Pines Inn and Suites in Cottonwood.

The business was able to cover a hefty chunk of the first phase of its solar-installation cost with help from the Rural Energy for America Program, or REAP.

It also received assistance from the renewable-energy Investment Tax Credit thanks to the Inflation Reduction Act.

Corey Bruening and his wife are part owners and general managers at the hotel. Bruening said they haven't been able to move forward with the second phase of the project.

"Our plans for what we would improve on our property have halted," said Bruening, "because we were kind of hoping that we would still have the budget to do those things."

Bruening said they were recently contacted by the U.S. Department of Agriculture, which said all new project applications have stopped.

They're also currently reviewing existing ones to see if they align with the new administration's guidelines.

On his first day in office, President Donald Trump signed an executive order that froze the distribution of IRA funds for clean energy and the bipartisan infrastructure law.

That was later overruled by a federal judge that demanded payments be restored.

Bruening said he is concerned about if and when they'll be able to finish their project.

Arizona has received more than $14 million in REAP grants and loans that have come from the IRA.

For Bruening and his family, it has always been important to want to improve the vitality and resiliency of the Verde Valley, which he said is now being put in jeopardy.

"The solar installer for us has now just said that they've stopped taking applications," said Bruening. "Like, all the application processes have stopped, and he is not recommending that they apply to new ones because that whole program has been stopped."

Bruening clarified that through REAP, beneficiaries receive financial assistance, but still must pay for the installation of their projects.

He said the help provided through the program allows farmers and small businesses such as his the opportunity to entertain investments that otherwise would be out of reach.




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