ASHLAND, Ky. – Kentucky Power has announced plans to ask regulators to extend a program that helps struggling coal businesses reopen and puts miners back to work in eastern Kentucky.
The company plans to file an application to extend the Coal Plus program with the Kentucky Public Service Commission. First approved in 2017, the Coal Plus program is set to expire December 31, 2019. The proposal, posted here, would extend the program through December 29, 2020. More details are posted online at kentuckypower.com/info/news/EconomicDevelopment/PoweringtheSector.aspx
Coal Plus allows Kentucky Power flexibility in three of its tariffs to offer special contracts with coal companies and coal processing businesses. Companies that agree to operate under an interruptible rate, for example, receive a discount. Several coal-related businesses have taken advantage of the program’s provisions under Coal Plus and others have expressed interest in the program.
“Coal Plus is helping to spur economic development and revitalize our communities,” said Kentucky Power President Brett Mattison. “By renewing Coal Plus, Kentucky Power can continue to give coal companies greater short-term flexibility to take advantage of different rates. Continuing the program is good for the coal industry and our customers.”
In recent years, Kentucky Power has become a strong advocate of economic development in the 20 counties it serves in eastern Kentucky. Since 2016, with the launch of the Economic Development Growth Grants (K-PEGG) program, the company has invested about $6 million in eastern Kentucky communities. The grants are funded through the Kentucky Economic Development Surcharge. For every $1 collected monthly from non-residential customers, company stockholders match customer contributions dollar for dollar, generating about $750,000 each year to be reinvested in eastern Kentucky.
Kentucky Power, based in Ashland, provides service to about 165,000 customers in all or part of 20 eastern Kentucky counties, including Boyd, Breathitt, Carter, Clay, Elliott, Floyd, Greenup, Johnson, Knott, Lawrence, Leslie, Letcher, Lewis, Magoffin, Martin, Morgan, Owsley, Perry, Pike and Rowan. Kentucky Power is an operating company in the American Electric Power system, one of the largest electric utilities in the U.S.