Kentucky Boasts the 3rd Lowest Cost of Doing Business in the U.S. - CNBC's Top States for Business, 2017 

The Kentucky Power Region

Kentucky Power, AEP’s operating company in Kentucky, provides electricity to approximately 175,000 customers in all or part of 20 eastern Kentucky counties. Our local economic development experts work with prospective and existing businesses and industries to identify smart and effective business opportunities in Kentucky.

Property Search

Find the best site in Kentucky to grow your business. Search our portfolio of certified sites, or all available sites and buildings.

Contact us if you’d like assistance with your search.

Advantages of Doing Business in Kentucky

Location & Infrastructure

  • A major east/west route, I-64, runs through the northern part of Kentucky Power’s territory and provides easy access to I-75, I-65, I-71, and I-79
  • 65% of the U.S. population, personal income, and manufacturing business establishments, and 40% of the Canadian population are within one day’s truck drive
  • Class I operators, CSX and Norfolk Southern, provide commercial freight service throughout Kentucky Power’s service territory
  • The Wurtland Riverport is an intermodal cargo facility located on the Ohio River
  • Adjacent to the Ashland Regional Airport, there is a foreign trade zone, and it is included in the Port of Huntington Tri-State, the largest port in the U.S., as measured by total tonnage


Business Climate

  • Kentucky has consistently had one of the lowest overall costs of doing business in the eastern United States
  • Corporate Income Tax: 4% on first $50,000 of net income allocated to Kentucky; 5% on the next $50,000; 6% on taxable income over $100,000
  • Sales and Use Tax: 6% of retail price of property sold, including utilities, no local sales tax
  • Property Tax: Real property is taxed at a state rate of $0.122 per $100 and is also taxed by local jurisdictions at varying rates; manufacturing machinery, telephone equipment, and pollution-control equipment are taxed only by the state at $0.15 per $100 assessed valuation
  • Kentucky’s innovative and progressive incentives and financial programs provide the flexible financial assistance businesses need when locating, expanding, or reinvesting in the stateText_Incentives_2
  • Kentucky had $27.5 billion in exports in 2014, up 9 percent from 2013, with services going to nearly 200 countries
  • Kentucky is home to multiple Fortune 500 companies, over 400 international companies from 31 different nations, and thousands more domestic companies

Workforce & Education

Pie Chart of Kentucky's Sectors of Employment

  • The Kentucky Skills Network team works closely to train workers in industry-specific skill sets, providing flexible and customized programs that companies need
  • Average wages in Kentucky are typically 16% lower than the national average
  • Worker availability in key occupations:
Table of Workers (2015)
Jobs  Average Hourly Earnings
STEM 68,882  $30.28
Engineers 15,905  $37.96
Business 75,394  $26.33
Automotive Production 130,616  $16.29
Source: EMSI 2017.2

Electric Service

  • Kentucky Power offers offer an incentive Economic Development Rider to enhance economic development through reductions in electric rates for major expansions or new investment
    • To qualify, each new investment must create at least 500 kW of new maximum billing demand over a base level and could receive a temporary demand charge discount of up to 50 percent depending upon the length of the contract
    • In addition, a supplemental demand discount of up to 5 percent may be available for customers who create and sustain 50 or more new jobs
    • Creating and sustaining at least 25 new jobs may qualify for a reduced supplemental demand discount.
  • Our industrial rates are competitive with our industrial tariffs and with the national average

Bar Chart Kentucky Power Industrial Rates

  • Kentucky Power owns 1,060 MW of generating capacity
    • Coal: 80.7%
    • Natural Gas: 19.3%
  • Kentucky Power operates 1,270 transmission miles and 10,081 distribution miles in Kentucky

The state of Kentucky is recognized as a leading state in economic development.

  • #2 in Automotive Manufacturing Strength – Business Facilities Magazine, 2017
  • #2 Most Economic Development ProjectsPer Capita – Site Selection Magazine’s Governor’s Cup, 2016
  • #3 for Cost of Doing Business – CNBC Top States for Business 2017
  • #6 in Manufacturing (Percentage of Workforce) – Business Facilities Magazine, 2017
  • #6 for Infrastructure – CNBC Top States for Business 2017
  • #7 Most Economic Development Projects Overall – Site Selection Magazine’s Governor’s Cup, 2016
  • #10 for Cost of Living – CNBC Top States for Business 2017

Our key customers include:

  • Air Liquide America, LP
  • Air Products and Chemicals, Inc.
  • Alpha Natural Resources, Inc.
  • AK Steel Holding Corporation
  • Caterpillar
  • James River Coal Company
  • Kellogg Company
  • Kings Daughters Medical Center
  • Marathon Petroleum Company
  • MarkWest Hydrocarbon, Inc.
  • Pikeville Medical Center
  • TECO Energy, Inc.

The principal industries we support are:

  • Aviation and Aerospace
  • Chemical Manufacturing
  • Coal Mining
  • Healthcare
  • Mining Support Activities
  • Natural Gas
  • Petroleum Refining
  • Primary Metals

For details about bringing your business to Kentucky:


Bob Shurtleff

Bob Shurtleff

Manager of External Affairs and Economic Development

Kentucky Power


Email Me

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