Senators Bunning & McConnell Introduce Legislation To Bring Cheaper Power To All Kentuckians
Senators Bunning & McConnell Introduce Legislation To Bring Cheaper Power To All Kentuckians
U.S. Senators Jim Bunning and Mitch McConnell yesterday introduced the "Kentucky Competitive Access Program (KCAP)" bill that would allow Kentucky's residential and industrial electric customers served by the Tennessee Valley Authority (TVA) to secure less expensive power from other electric suppliers.
"Kentucky has some of the cheapest electricity rates in the nation," said Bunning. "However, those Kentuckians who receive their power from TVA currently pay higher rates than those Kentuckians not served by TVA. My goal is to fix this problem and ensure that all Kentuckians have access to more affordable electricity."
"Kentuckians served by TVA pay rates that average 30% higher than the rest of the Commonwealth, costing these communities more than $100 million in higher rates per year," said McConnell. "If distributors want to free their customers from this TVA tax and pursue more affordable power, they should be able to do so. This legislation will ensure that Kentucky distributors have this option."
Bunning and McConnell's legislation would allow Kentucky electric consumers to purchase cheaper power and have it transmitted over TVA's electric grid to the Kentucky electric distribution companies who would then provide the power to Kentucky customers.
Kentucky electric distribution companies served by the TVA currently can not provide their customers with access to Kentucky's inexpensive power. This is because under existing federal law the Federal Energy Regulatory Commission (FERC) has limited authority over TVA and can not require it to transmit the cheaper power to most, if not all, of the Kentucky distributors. Bunning and McConnell's legislation removes this restriction and provides the FERC with the authority to require TVA to transmit power to all Kentucky distributors.
"All Kentuckians deserve to choose where they receive their power," said Bunning. "This bill will not only give them that choice, but it will also create a more competitive environment among Kentucky distributors and allow our businesses and residential consumers to keep more money in their pockets."
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