Kentucky Power Co. is seeking to lower its electric rate request by $8.1 million in its updated application with the state Public Service Commission.

The American Electric Power Co. Inc. subsidiary is proposing to reduce its base rate adjustment by about $6.2 million, to $63.3 million from $69.6 million, according to an Aug. 8 news release. The updated application also includes an additional $1.9 million in customer savings through lower riders.

"We worked with our bankers to refinance about $325 million in existing long-term debt, similar to how a homeowner might refinance a mortgage," said Kentucky Power President Matt Satterwhite. "We were able to reduce our interest rate by about 3 percent and we are passing that savings on to customers."

Kentucky Power said its proposed increases have been lowered by 2% for residential customers and by 1% for its commercial and industrial customers. On June 28, the company originally requested an increase of 16.8% for residential customers and 8% to 15% for commercial and industrial customers to help mitigate customer losses.

If approved by the PSC, the new rates could go into effect in mid-January 2018.