BY ROGER SMITH
MOUNTAIN CITIZEN
The Kentucky Public Service Commission has opened a statewide proceeding to examine the affordability of electric and natural gas service as residential customers face rising utility costs.
The proceeding comes less than two months after the commission ordered a separate independent audit of Kentucky Power’s management and operations, an action with particular significance in Eastern Kentucky, where residents and local governments have pushed for greater scrutiny of utility costs and repeated rate increases.
The PSC said in an Aug. 26 press release that the new affordability case will allow the public, utilities and other stakeholders to identify affordability concerns and consider existing and potential measures to ease the burden on residential ratepayers.
All regulated electric utilities and Kentucky’s five largest natural gas utilities are parties to the proceeding.
According to data cited by the PSC from the U.S. Energy Information Administration, Kentucky’s average residential electricity price increased from 10.87 cents per kilowatt-hour in 2020 to 13.24 cents in 2025, an increase of 21.8%.
The PSC said access to electric and natural gas service is fundamental to the health, safety and well-being of Kentucky residents and that a broader examination could help regulators better understand the factors contributing to affordability problems across the state.
The proceeding will also examine existing approaches to addressing utility costs and consider potential new measures.
The statewide review follows a separate PSC investigation involving Kentucky Power, which serves approximately 161,850 retail customers in Eastern Kentucky, including Martin, Johnson, Floyd, Pike and Lawrence counties.
On July 2, the PSC ordered a “full and comprehensive” independent audit of Kentucky Power’s management and operational efficiency after citing concerns about the company’s planning, decision-making and judgment. Kentucky Power must pay for the audit, which will be made public when completed.
That action followed months of public debate in Eastern Kentucky over Kentucky Power rates and management.
In May, the Mountain Citizen reported that Zachary Tackett, founder of the grassroots Creek Don’t Rise Coalition, was traveling throughout the region asking fiscal courts to support a resolution calling for a full public audit of Kentucky Power and greater scrutiny before additional rate increases were approved.
Martin County was among several Eastern Kentucky counties that later adopted a resolution supporting greater accountability. By July, Tackett’s campaign had also generated hundreds of individual signatures.
The new affordability proceeding is broader than the Kentucky Power audit and applies statewide. It does not order another utility audit or halt rate increases. Instead, the PSC said it is seeking information on the factors affecting residential utility affordability and possible approaches to address those concerns.
The PSC plans to hold a technical conference in 2027 to examine issues developed through the case.
Utilities and others have until Sept. 30 to submit initial comments and suggest topics for consideration.
Individuals and organizations with a particular interest in electric or natural gas affordability may seek formal intervention in the proceeding or submit public comments.
Comments may be filed through the PSC website or emailed to [email protected]. Include PSC Case No. 2026-00185 in the subject line.
(The separate Kentucky Power management audit is Case No. 2026-00159.)