HAZARD – The Kentucky Public Service Commission hosted a public meeting concerning proposed rate increases by Kentucky Power Company (KPC) one week ago today at Hazard Community and Technical College.

The public was invited to come and speak at the meeting to voice concerns and comments about the proposed increase.

The meeting began with comments from the Chairman of the Public Service Commission, David Armstrong.

He reminded those in attendance of the proposed 34 percent rate increase by the Kentucky Power Company, and said those speaking should keep in mind three things the Public Service Commission would consider when deliberating on whether or not to allow the increase: are the rates fair; are the rates just; and are the rates reasonable.

“We’re here to listen to you and only you,” Armstrong said. He then started the meeting by allowing all elected officials in attendance to speak first.

Public officials in attendance were: Representative Fitz Steele, Letcher County Judge Executive Jim Ward, Attorney Paul Collins representing Mayor Bill Gorman, Knott County Judge Executive Randy Thompson, Perry County Judge Executive Denny Ray Noble, Senator Brandon Smith and Letcher County Commonwealth Attorney Edison Banks.

“My people are struggling in the mountains,” Rep. Steele said. He said that because of this and the current state of the economy, a rate increase in eastern Kentucky was not the best decision the power company could make.

Paul Collins agreed with Steele, saying that the City of Hazard can’t agree to such a high increase at this time.

“This request is untimely and unfair,” Collins said. He added that the data used to support the proposed increase was taken from September 2008 to September 2009.

“If anybody’s been paying attention in this country, that is not a representative time period by any stretch of the imagination,” Collins said.

He said that the City of Hazard was requesting that the company wait until the 2010 data is released before they determine whether or not a rate increase is necessary.

He also said that during the time period in question, Kentucky Power Company still had a revenue of 632 million dollars, which was a 3 percent positive return on equity. This revenue was acquired during a time when a lot of businesses were unable to avoid bankruptcy, he said.

“Sometimes in negotiations, you may ask for a loaf hoping to get half a loaf because half a loaf is better than none,” Collins said. “I really think what Kentucky Power is asking here is for you to turn over the keys to the bakery.”

Judge Denny Ray Noble brought up the issue of maintaining power line right-of-ways, something he said that company had failed to do for some time.

“They could save a lot of money just by maintaining the lines everyday,” Noble said.

He also echoed Steele by saying that not many people in this area have jobs and that any increase by the power company would adversely affect the poorest among us.

“With this increase, our people will do without electricity and our people will freeze to death (in the winter),” Noble said.

The microphone was opened to the rest of the audience after all public officials had spoken. Those who signed up to speak at the meeting were allowed up to five minutes to speak.

None of those who spoke agreed with the proposed rate increase.

Deborah Campbell of Upper Second Creek said her electricity was out 13 times last year and that trees had grown to the point where power lines disappeared among them.

“They (Kentucky Power Company) do not maintain the lines,” Campbell said.

She said a lot of people would not be able to afford a rate increase of any size, and that the Commission should think about things like that before granting permission for a rate increase.

Carolyn Begley continued the criticism of the way KPC keeps their power lines free of trees.

“They should have made a profit – a bigger profit than they usually do – because they’ve not paid workers to get out here and maintain their lines,” Begley said.

She said she wanted to know what sacrifices the company had made since they are requesting such a high increase on their rates.

“I feel like if they had done their job all long we wouldn’t be in this predicament,” Begley said.

Sue Banks, of Whitesburg, said she will be 68 this year, and some of the power poles and lines around her house are only about three years older than her.

Not replacing old, worn out power poles is the result of lazy tree-cutters who sit in there trucks instead of cutting trees away from lines, Banks said. She said the company is greedy.

“We’re not getting anything back for what we paid,” Banks said. “We should have something to show for what we’re paying.”

Ricky Harlowe of Knott County brought the rate increases into perspective using numbers. He said the company led its customers to believe that they were being subsidized for a two percent loss.

“When you look at me and tell me I’m a two percent loss, and then you’re going to put a 34 percent increase on me, I’m smart enough to figure out that that’s a 32 percent profit,” Harlowe said.

He also said that power lines and poles don’t just get covered up by trees, they “disappear” in the trees, and even when the company replaces old poles and lines with new ones, they don’t clear trees behind the lines, so when a storm arrives, the trees fall on the lines.

“The power company took a calculated gamble on not cutting trees and not clearing right of ways (for power lines),” said Jenkins resident Wayne Flemming. “They got caught with their pants down this year.”

He added that he feels like poor people are always the ones asked to pay when companies err like Kentucky Power did.

“You could be those people’s savior,” Flemming said to those present from the Commission. “You’ve got the opportunity to say ‘no’ to the power company.”

The Public Service Commission will have a hearing on this matter at their headquarters in Frankfort on Tuesday May 25 at 10 a.m. The hearing will be open to the public and will be streamed online at www.psc.ky.gov.