Was I overcharged on my electric bill? Maybe. Here’s what you need to know

After receiving reports that Kentucky Power had overcharged customers earlier this year, we reached out to the company, with Kentucky Power’s Cynthia Wiseman sending us the information below. The Independent will continue to follow this story if updates occur.

Each month, Kentucky Power files fuel information with the Kentucky Public Service Commission (PSC). Kentucky Power’s fuel adjustment is billed on a two month lag. Over/under recovery normally occurs since there is no way to know the exact amount of electricity (kWh sales) customers will use in a month.

When Kentucky Power calculated its January fuel adjustment factor, the factor had to be based on November energy usage. Energy usage increased in January due to colder than normal weather, causing the total amount collected for fuel adjustment to be higher than the amount necessary for collection.

This over-collection is immediately put back into the next calculation. In February 2022 we reported the $3 million in over-recovery. This over recovery is already being reflected in customer bills for March. In fact the $3 million brought the March FAC rate down by 72%.

These fuel costs are used to generate electricity at our plants. Kentucky Power makes no profit from these expenses but it is passed through to customers, per state regulations.

The PSC will do a review twice a year and determine if any further adjustments are needed.