Kentucky Power asks PSC to change the way customers learn about rates
Kentucky Power filed an application on Feb. 6, asking the Kentucky Public Service Commission to limit the way it informs the public about its rates.
The application asks the PSC to grant the company a deviation from requirements of 807 KAR 5:006, Section 7(1)(b). The regulation requires utility companies to publish the rate schedule under which bills are computed on the utility’s web site and also by printing it on the bill, publishing it in a newspaper of general circulation, mailing it to customers once each year or allowing space on bills for customers to indicate his/her desire for a copy of the rates mailed to them.
Kentucky Power is asking, instead, for permission to furnish rate schedules to customers on its website, or “by request,” via mail or email.
Kentucky Power reports that to comply with the law, it currently posts the tariffs on its website and mails the applicable rate schedule to each customer annually as an insert included in customer bills. The company states in the application that while mailing the insert is “the most cost-effective and administratively-feasible method” of complying with the regulation, it “nevertheless imposes costs” on the company because it must reformat each tariff rate schedule so it can be included as a bill insert and it must use a third party to print the inserts.
“The billing insert is an out-of-the-ordinary project requiring manual programming by both Kentucky Power and its printing vendor,” the application states. “It is also time consuming and costly because of the variations required for each customer class.”
“Kentucky Power proposes to streamline and simplify its process of furnishing copies of applicable rate schedules to customers by implementing a process consistent with the current regulation,” the application states.
It includes a paragraph proposed to be added to bills that notifies customers that they can access rates online, via a website link provided, by clicking a “Kentucky Tariffs” link to view their tariff rates or by asking to view the tariff sheets at the company’s office or by calling the company’s customer service line.
It reports mailing the inserts costs about $10,000 and the proposed method would save the company that amount annually.
The company asks that the PSC issue a declaratory order stating that the proposal meets requirements and for permission to amend its tariff sheets for the change.
The full application is available online at, psc.ky.gov under case number 2020-00022.