The Kentucky Public Service Commission (PSC) has approved a Certificate of Public Convenience and Necessity (CPCN), allowing Kentucky Power to continue investing in its 50% share of the Mitchell Generating Station in West Virginia beyond 2028.
Previously, the PSC had rejected extending Kentucky Power’s joint ownership agreement past 2028, noting that building a new power plant would likely be less costly than upgrading the existing plant to meet environmental compliance requirements. Under West Virginia rules, Wheeling Power, which owns the other half of the plant, would bear the full cost of upgrades.
The approval followed a settlement between Kentucky Power and Kentucky Industrial Utility Customers Inc., which the Attorney General’s Office did not object to. However, the Sierra Club opposed the settlement.
The PSC acknowledged its reluctance, criticizing Kentucky Power for failing to properly plan for alternative energy resources and describing the company’s analysis as insufficiently rigorous.
PSC Chair Angie Hatton explained:
“In the three years since the PSC denied the request to continue investing in this plant, Kentucky Power has failed to propose a feasible plan for new generation or firm capacity contracts. We are now forced to either permit continued investment in a 54-year-old plant in another state or leave customers exposed to a volatile market. Neither option is ideal, and we chose the least bad.”
The ruling allows Kentucky Power to recover upgrade costs from customers, increasing the average residential bill by $2.33 per month, down from the original proposed increase of $3.68.
This decision ensures continued electricity supply stability for Kentucky Power customers while highlighting ongoing challenges in energy planning and environmental compliance.
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