Paducah Power System announces rate increase for customers

Paducah Power System customers will see an increase in their electric bills beginning next month.

On Monday, Paducah Power System's Board of Directors announced customers power bills will increase by three percent beginning July 1st.  For the average residential customer using 1.000 kilowatts a month, the average hike will be $4 per month.

Inflation and rising operating costs are noted as the reason for the rate hike.  The rate increase is the first issued by PPS since 2021 and only the second hike since 2014.

“While we’ve held rates steady in recent years by budgeting conservatively and selling capacity to create new revenue streams, the current overall rate of inflation is more than 20% higher than in 2021, and the cost of materials we use most has more than doubled,” said retiring Chief Executive Officer Dave Carroll.

“Without a small adjustment now, we will slide into a financial position that’s neither strong nor stable and will be problematic for our customers down the road.”

According to PPS staff, the rate adjustment is also needed to fund an adequate reserve for emergencies and achieve debt coverage metrics yielding better interest rates for future cost saving strategies.