ASHLAND, Ky. (WMDJ) — Kentucky Power reported $40.8 million in net profit for 2025, up from $36.9 million the previous year, according to the utility's audited financial statements.

Its parent company, American Electric Power, reported nearly $1.19 billion in net earnings during the third quarter of 2026, an increase of approximately 22 percent from the same period last year. Those earnings reflect AEP's operations across multiple states, not Kentucky Power alone.

Meanwhile, Kentucky Power customers have been paying higher electricity rates since March 1. The state-approved increase adds an estimated $10.76 per month, or 5.87 percent, to the bill of a residential customer using 1,208 kilowatt-hours monthly during the first year.

The Kentucky Public Service Commission approved a smaller increase than the utility originally requested.

Kentucky Power's financial statements also show $58.7 million in charges from an AEP subsidiary for management and professional services during 2025. Those charges represent business expenses, not additional profits.

State regulators have also ordered an independent management audit examining Kentucky Power's operations, decision-making and relationship with AEP.