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 smallest portion of our rate structure, the Power Cost Adjustment, fluctuates up and down quarterly to reflect changes in wholesale power costs.

The eight-month review process involves a workshop at the end of each monthly board meeting (second Monday of each month at noon). A different topic is discussed during each workshop to allow board members to fully understand all segments of our rate structure and our future financial needs. This also provides transparency and allows customers time to provide input. Topics include cost of service principles, rate design issues, billing issues, customer incentives and more. The workshops will run through April. At that time staff will propose to the board a final rate design. Any new rate changes will go into effect July 1, 2021.

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

July 13, 2020-Rate Review Process

August 10, 2020-Cost of Service Principles