Rate Review Process

Paducah Power System is currently undergoing a rate review process, a practice recommended for utilities every few years to project future revenues and expenses.  A rate study determines if a utility’s rate structure provides the revenues needed to adequately continue services, operate in a safe manner, and follow all applicable laws.  Some utilities perform them every year.  The last review for Paducah Power was in 2013. PPS has not increased its base rates since 2014. The Power Cost Adjustment (PCA) portion of our rate structure fluctuates up and down quarterly to reflect changes in wholesale power costs. 

To date, the eleven-month review process has involved a workshop at the end of each monthly board meeting (second Monday of each month at noon). A different topic was discussed during each workshop to allow board members to fully understand all segments of our rate structure and our future financial needs. This also provided transparency and allowed customers time to provide input. Topics included cost of service principles, rate design issues, billing issues, customer incentives and more. The workshops ran through April. In May staff proposed to the board a final rate design. On June 14, the Electric Plant Board will hold a public hearing on the rate plan at noon at 1500 Broadway, Paducah.  Public comments will be accepted at that time.  Written and recorded video comments will also be accepted prior to the hearing at comments@paducahpower.com.  The board will either vote on the plan at the June 14 meeting or schedule a subsequent meeting based upon the outcome of the public hearing.  Any new rate changes approved by the board will go into effect July 1, 2021. 

 Click here to read the proposed rate report.


Click on the links below to see the presentations given to date at the workshops.






View Presentation Slides:
Feb 8, 2021
Review Process Update

View Presentation Slides:
March 8, 2021
Review Process Update

View Presentation Slides:
Sep 14, 2020
Rate Design Issues/Options

View Presentation Slides:
April 12, 2021
ACOS & Preliminary Rate Design

View Presentation Slides:
May 10, 2021
Proposed Final Rate Design

View Presentation Slides:
Nov 9,2020
Billing Issues/Options

View Presentation Slides:
Jan 11, 2021
Preliminary Rate Schedules

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Paducah Power System Address: 1500 Broadway St, Paducah, KY 42001