We're Here to Help
Kentucky Power is focused on bringing economic development opportunities to eastern Kentucky and supporting the communities and customers we serve. We offer several ways to help customers lower their bills and use less energy - because you pay only for the electricity you use.
Customers can enroll in an Average Monthly Payment plan (AMP) that spreads the cost of your heating and cooling over an entire year, helping to balance your electric bills and making it easier for you to budget. We also offer extended payment arrangements and payment assistance programs. If you are struggling to pay your bill, please call us at 1-800-572-1113 so that we can help.
How Securitization Helps You Save
As costs continue to rise, Kentucky Power is working to reduce the impact on our customers. One way we're doing that is through securitization—a financial tool that helps lower costs and keep bills more manageable.
Securitization allows us to finance certain expenses, such as those from storms, at lower interest rates. Instead of recovering these costs through higher rates or fees, we spread them out over time and reduce the overall amount passed on to customers.
In 2023, Senate Bill 192 was passed which allows the Public Service Commission to approve qualifying utilities, such as Kentucky Power, to securitize transactions that will result in an estimated customer savings of $97 million over time.
This means:
- Lower costs are passed on to our customers.
- Bills will be lower than they would be without securitization.
- Better long-term value for the service you count on.
We're committed to keeping energy as affordable and reliable as possible for today and the future.
More on securitization
- Securitization is the process of selling high quality, highly rated securities to investors, with the interest and principal payments secured by a charge collected from customers.
- This process allows a utility to recover commission-approved costs through the issuance of bonds.
- Securitizing a previously retired asset can lower costs to customers by financing repayment at a lesser rate of return.
Why Securitization is Needed
- Federal environmental regulation forced Kentucky Power to retire its Big Sandy coal-burning plant in in 2015 and customers continue to pay for the remaining plant balance.
- Eastern Kentucky has experienced unprecedented major weather events in recent years; securitization of those costs minimizes rate impact for our customers.
- With securitization of the Big Sandy plant, Kentucky Power customers will save $97 million.
Benefits For Customers
- Lower rates: Securitization leads to reduced costs for our customers.
- Competitive rates: It helps maintain competitive pricing and prevents eastern Kentucky from losing more industries to other states.
- Reduced fixed costs: Securitization of previously retired assets further lowers fixed costs for our customers.