FRANKFORT, Ky. (WMDJ) — The Kentucky Public Service Commission has opened a formal investigation into the management and operation of Kentucky Power Company, ordering a full, independent audit of the utility's management and operational efficiency.

The Commission said the investigation follows concerns raised during Kentucky Power's recent rate case. In its February order concluding that case, the PSC determined an independent management audit should be conducted after finding that arguments presented by the Kentucky Attorney General's Office of Rate Intervention, along with concerns raised in previous cases, called the company's management and operation into question.

The PSC said this is not the first time it has questioned Kentucky Power's planning and decision-making. The order references several recent cases involving major investments in electric generation and transmission, including one in which the Commission said it approved the company's proposal because it viewed it as the least bad option due to concerns over the analysis supporting the project.

Kentucky Power provides electric service to approximately 161,850 customers across 20 eastern Kentucky counties, including Floyd, Johnson, Martin, Magoffin, Knott, Perry, Pike, Lawrence and Letcher counties.

A qualified, independent firm will conduct the audit, with Kentucky Power responsible for all associated costs. The Commission said the completed audit will be made public and could lead to additional investigations if further concerns are identified.

You can see the full order for the PSC here.