A new white paper by Energy Ventures Analysis (EVA), prepared on behalf of America’s Power and Dependable Power First Kentucky, underscores the important role that coal continues to play in keeping electricity prices stable and affordable in Kentucky. The report found that Kentucky’s reliance on coal has helped maintain comparatively low electricity prices over the past two decades when compared to other states in the region.
“Federal regulations designed to force utilities to transition away from coal-fired generation have contributed to rising electricity rates across the country,” said Michelle Bloodworth, president and CEO of America’s Power. “This paper highlights how states like Kentucky that rely on their coal plants benefit from some of the lowest, most affordable retail electricity rates in the country.”
The EVA paper noted that coal remains the dominant source of electricity in Kentucky, responsible for 67% of the state’s electricity. At the same time, Kentucky’s retail electricity rates, at 10.18 cents per kWh, are 22% lower than the national average and often among the lowest of the 26 states east of the Mississippi River.
“Power bills can be a drain on businesses and families everywhere. Thankfully, Kentucky’s abundance of coal electricity has helped reduce price volatility and kept rates affordable even as they soar elsewhere,” said Corey Elder, acting executive director of Dependable Power First Kentucky. “Politicians and policymakers in other states would be wise to learn from Kentucky and take similar steps to maintain these critical, baseload power plants.”
Although they remain significantly lower than the national average, Kentucky’s retail electricity rates have been gradually increasing since 2001. This is due in part to greater reliance on other sources of electricity, especially natural gas, that are susceptible to price volatility.
“This paper is an important reminder of why coal’s dependability and price stability make it indispensable to our long-term economic success. Thankfully, new federal policies are finally recognizing what Kentucky has known for decades – that coal is essential to a reliable and affordable energy future.” said Elder.