Attorney General Stumbo’s Agreement with Kentucky Power Company Saves Consumers Approximately $24 Million
$350,000 for Low Income Home Heating Assistance

FRANKFORT, KY (February 9, 2006) – Attorney General Stumbo has reached a settlement agreement with American Electric Power Company, also known as Kentucky Power Company. The agreement, which will save consumers approximately $24 million, has been sent to the Public Service Commission for approval.

Kentucky Power had filed a case before the Public Service Commission requesting an increase of approximately $64.8 million. Instead, under the terms reached in the agreement, the Attorney General and other parties settled at a rate increase of $41 million, or approximately $24 million less than originally demanded by the company.

The company’s last rate increase was more than twenty years ago. “While any increase is difficult for our citizens, we successfully reduced the increase by 40 percent in this case,” Stumbo said.

Approximately $350,000 in Low Income Home Energy Assistance Program (LIHEAP) funds will be made available under the agreement. “Ensuring protection for families at risk of being left in the cold is a priority of my Office,” Stumbo said.

Kentucky Power Company serves nearly 175,000 customers in 20 counties, primarily located in Eastern Kentucky.