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Kentucky regulators have approved Kentucky Power's request to reinvest in the Mitchell coal-fired power plant in West Virginia, reversing a previous order to terminate ownership. The decision, described as the 'least bad' option, allows for a $138 million investment, leading to a $2.33 increase in average customer bills amidst a proposed 14.9% rate hike for the utility's 165,000 customers.

This comes as Kentucky Power faces declining customer numbers and rising infrastructure costs. The Public Service Commission criticized the company's planning and analysis but felt pressured to act to avoid exposing customers to market volatility.

The PSC's order mandates tracking of expenditures and annual reporting until 2031. Kentucky Power's long-term investment in the 1,560 MW plant, co-owned with Wheeling Power, was deemed necessary for market flexibility. The Sierra Club advocates for converting the plant to natural gas, while the Attorney General did not oppose the reinvestment agreement.