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Data Centers Help Support Long-Term Affordability

What Our Customers Need to Know

Data centers pay costs tied to their service, including for infrastructure built for them.
All customers benefit from the grid costs paid by data centers. Because data centers bring steady demand and funding over time, the costs of running the system are shared among more customers — reducing pressure on everyone's bills.
Your rates may still change over time, typically driven by fuel costs, grid upgrades and broader energy market factors.

How This Benefits You

Helps Keep Bills More Affordable Over Time

More customers sharing grid costs means lower and less frequent price increases without compromising reliability.

Strengthens Reliability in Your Area

New infrastructure built for large customers, including data centers, also improves your service.

Supports a More Modern Grid

Investments tied to large customers help expand and improve the system to serve new homes and businesses and replace aging equipment.

How You Are Protected

Data center customers pay their share, upfront and over time. You are not on the hook if a project changes or leaves — our contracts require upfront financial guarantees and long-term payment commitments even if usage drops.

Safeguards to protect our customers:

Kentucky Power's large load tariff requires data centers to provide financial backing for the cost to serve their projects before they connect to the grid.
Long-term contract commitments and minimum payment requirements included in the large load tariff help protect existing residential and small business customers.
The Kentucky Public Service Commission reviews and approves any rate changes to help ensure they are fair, just and reasonable.

Bottom Line

Data centers pay their fair share.
They can help reduce how fast rates might otherwise increase.
And they help fund a stronger, more reliable grid that benefits you.
When structured correctly, thoughtful growth from large customers can strengthen the system while maintaining protections for existing customers.

Read a message from President and COO Cindy Wiseman about how economic development, including data centers, will help power our path forward in eastern Kentucky.

FAQs

Do data centers raise my electric bill?: No, data centers are required to pay costs tied to their service, including for infrastructure built for them. Large load customers are also subject to approved tariff structures and contractual commitments designed to help protect existing customers. As with any electric bill, prices can still change over time because of things like fuel costs and the broader energy market as well as equipment replacements and upgrades that benefit the whole system.
Why does Kentucky Power welcome large customers?: We welcome large customers when their projects are a good fit for the communities we serve. These projects can bring jobs, support local growth and pay for infrastructure we all rely on for everyday needs. Thoughtful economic development can also help increase overall electricity usage, allowing fixed system costs to be shared more broadly over time.
Will Kentucky Power keep enough generation and transmission?: Yes, we plan ahead so we can keep delivering reliable service as demand for power grows. Our goal is to be ready for the future while continuing to meet existing power needs at a reasonable cost.
Muskie Data Center Information: The Kentucky PSC has previously approved a set of protections specifically for large-load customers (150 MW or more). These protections are designed to shield existing Kentucky Power customers from financial risk and are not imposed on any other Kentucky Power customer except the large-load customer, including TeraWulf, owner and operator of Muskie Data Center planned in Boyd County's EastPark Industrial Park.

Kentucky Power is committed to providing transparency on how agreements with large-load customers are managed and to provide understanding on the safeguards in place to protect other customers. For details about the Muskie Data Center, customers can review the following:

Industrial General Service tariff

Muskie Data Center fact sheet

TeraWulf's website

For additional questions about the tariff or large-load electrical service, customers can contact us at info@kentuckypower.com.

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