FRANKFORT, Ky. (LEX 18) — As power companies answered lawmakers for unannounced power outages across Kentucky during the winter storm in December, they were also questioned about what's happening with rising costs.
Whenever there's cold weather, wind chills and ice storms, customers expect to pay a little more for power because of increased demand. But this winter, Kentuckians across the commonwealth are complaining that their power bills have gotten out of control.
After a host of complaints and a push from lawmakers, state regulars decided to investigate how to ease volatile fuel costs that have been passed onto consumers. But there's no word on what changes will come or how long it'll take.
On Thursday, as lawmakers in Frankfort questioned power companies about the winter storm, LEX 18 questioned them about what can be done in the meantime.
Chair of the Natural Resources and Energy Committee Jim Gooch Jr. says there's no quick fix but believes the issues stem from an ousting of coal.
"What I think is when you shut down coal plants then you have to replace it with something and you may be going to the market, as they said today, they have to pay three times as much for buying power from someone else," said Gooch.
Gooch says passing legislation to help will take time.
"You have lots of different people that provide utility. Some people get their utilities from municipal, their city owns, you know, utilities. Or it's a co-op, or it's made from someone now, you know, that's a private company. And so, they're all treated differently, all regulated differently. So, you know, that presents challenges to us," said Gooch.
Like Governor Beshear last week, Gooch pointed to public assistance programs to help those in need.
Not every power company was at the capitol to answer questions, but we did get a chance to ask LG&E and Kentucky Utilities what they were doing to manage those high bills.
"All of the costs that we incur are being reviewed by our regulator and obviously every day we work to provide the lowest cost we possibly can," said Chief Operating Officer Lonnie Bellar.
They too pointed to public assistance programs, payment plans, and also added that upgrading energy efficient equipment could also save money.
We also asked if there was a way for power companies to take on some of the fuel adjustment costs themselves instead of passing it onto the consumers.
"Fuel costs are only a portion of the cost that we pass onto consumers. We have found it historically most beneficial for the longer period of time for us to pass fuel costs on at the exact pace at which we incur those costs. It works out best for the companies and it works out best for the customer. Because, by the same token if your prices were to go down and they have moderated in the natural gas side of our business, that those costs can be more readily passed back on those cost savings — in this case would be passed on to customers," said Bellar.
He added they don't support that changing.
Not the answers that frustrated consumers wanted to hear with more cold weather on the way.
Assistance:
LG&E and KU Assistance Programs
Kentucky Power Heart and Thaw
Kentucky Power Average Monthly Payment Plan
