WSAZ Investigates | The Price of Power

OLIVE HILL, Ky. (WSAZ) - Power bills have given some Olive Hill residents sticker shock during the past few months.

Resident Amy Stapleton says her bill has increased, and this month her bill featured a power cost adjustment fee that totaled nearly $538 -- nearly $400 higher than the same charge the previous year.

“It’s been a complete shock,” Stapleton said.

Olive Hill residents are not direct customers of Kentucky Power (an AEP company), the city has a contract with Kentucky Power to purchase power, that is then supplied to the residents. The city then bills the residents directly for the power they use.

A representative with Kentucky Power says, “Kentucky Power does not control how the city of Olive Hill bills its customers – that includes, “power cost adjustment.”

The city of Olive Hill sent out a news release. In that release, the city says Kentucky Power charges Olive Hill a fuel adjustment cost every month.

According to Kentucky Power, the company recovers dollar-for-dollar the costs of purchasing fuel to power its plants. That cost varies.

The city says they have to then pass that extra cost onto Olive Hill residents - known as the “Power Adjustment Cost.”

In their news release, the city says “The extraordinary costs on the city’s February bill from AEP was a fuel adjustment cost for December 2022.”

Olive Hill says the more they are charged by Kentucky Power for fuel costs, the more residents have to pay as a result.

The city also said in their release that the state Attorney General’s Office is reviewing the city’s February bill from Kentucky Power.

WSAZ reached out to the Attorney General’s Office about that review - asking what they’ve found so far and if there’s anything they can do to help. We are waiting on a response.

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