NewsLEX 18 In-Depth

Actions

Governor, state regulators looking into high utility bills

IMG_8565.jpg
Posted at 7:34 PM, Jan 26, 2023
and last updated 2023-01-27 16:24:26-05

FRANKFORT, Ky. (LEX 18) — Governor Beshear expressed concern over complaints of higher-than-normal utility bills in eastern Kentucky at his Team Kentucky address on Thursday.

Robbie and Melissa Justice say they are running out of options to try to keep the power on in their Pikeville home.

"It's an attack on eastern Kentucky and the people up here," said Robbie Justice.

The senior citizens rely on disability and social security benefits as their only source of income.

"I paid this year, January the 4 of 23 is when I paid it. The fuel adjustment cost had went up to 160 dollars and 45 cents," said Melissa Justice.

They are currently behind and unable to tap into limited community resources. They're hoping government officials will help them sooner than later.

LEX 18 told the governor about concerns from residents living in Pike County over Fuel Adjustment Clause charges. By law, companies are allowed to pass the cost of fuel onto customers, regardless of how price fluctuates.

Governor Beshear said it's an issue he's concerned about, and it's been going on for years.

"Especially in eastern Kentucky, power rates have been too high for a long time. It's why I took on those power companies as attorney general," said Beshear.

In 2019, his Office of Rate Intervention helped advocate for the Public Service Commission to deny a requested rate increase and instead decreased current rates of Atmos Energy, saving Kentucky families nearly $15 million annually.

"Certainly, eastern Kentucky, which has already faced that challenge, now with what's happening globally, that contributes to increased energy prices, are making it even more difficult," said Beshear.

Beshear says at least two programs exist out there that could help people in addition to visiting your Community Action Council.

LIHEAP program

LIHEAP is a federally-funded program to help eligible low-income households meet their home heating and/or cooling needs. It is facilitated through Community Action. Reach out to your local agency for help to apply.

"There is not enough money in it, but it is a first come, first serve program and we want to make sure people know about it and how to apply to it," said Beshear.

The Homeowner Assistance Fund

This program was created to help homeowners adversely impacted by COVID-19 avoid foreclosure or loss of utility services, very similar to the eviction relief fund for renters. Qualified homeowners can visit teamkyhaf.ky.gov to apply for up to $35,000 in assistance to help with delinquent mortgage payments, property taxes, homeowners and/or flood insurance, homeowners' association fees and utility costs. If approved, the funds will be paid as a grant directly to mortgage servicers, utility companies, county property tax administrators, insurance agencies or homeowners associations.

"We'll look for any other programs that we can tap into, knowing it's a big issue and getting people through this time of inflation, which is tough. I think it's temporary, but it's been going on a while. It's something we've gotta do," said Beshear.

The Kentucky Public Service Commission Investigation (PSC)

The investigation is still open, and they have not made any findings. The commission is unable to comment on open cases.

Administrative Case No. 2022-00190: https://psc.ky.gov/Case/ViewCaseFilings/2022-00190

"The Commission and the Commission's staff take their obligations to all citizens of the Commonwealth seriously. Determining fair, just and reasonable rates for adequate, efficient and reasonable service requires balancing the interests of numerous parties, often in conflict with each other," wrote a spokesperson in an email.

For rate changes, utility companies cannot change the rates they charge customers without prior approval of the Commission. Once they submit an application, the Commission establishes a legal case for the review of the adequacy of the rates charged.

The cases are lengthy and complex, with in-depth review of expenses, revenues, operations, and the appropriate level of rates by customer class. The record of each case is transparent to the public and decisions by the Commission are provided in legal orders that describe the reasoning behind each of the issues in the case.

Complaints

On December 1, 2022, Attorney General Cameron's Office of Rate Intervention submitted comments to the PSC in response to the Commission's investigation in the Fuel Adjustment Clause (FAC).

"The anti-fossil fuel energy policy of the Biden administration have dramatically increased fuel prices and unnecessarily burdened Kentuckians with rising utility bills. To represent the interests of ratepayers in Kentucky, we provided the PSC with a list of common-sense actions that could be taken to ensure Kentuckians have access to reliable and affordable utilities," said Communications Director Krista Buckel about their involvement in the PSC investigation.

To file a rate complaint with Attorney General Daniel Cameron's Office of Rate Intervention, click here: https://secure.kentucky.gov/formservices/AttorneyGeneral/UtilityComplaint