The Kentucky Public Service Commission has approved a settlement agreement granting a rate increase to Kentucky Power.
The agreement allows Kentucky Power to increase annual revenue by $45.4 million, which is 65 percent of the amount sought by the company in its December 2014 application. As part of the settlement, Kentucky Power agreed to drop its appeal of an earlier commission decision that disallowed certain fuel costs, saving the company's customers a total of about $54 million.
Customers will pay a 15-cent monthly charge that will generate about $300,000 annually — to be matched by company shareholders — for a fund to support economic development efforts in Kentucky Power's service territory.
Kentucky Power has about 173,000 customers in 20 counties in eastern Kentucky.