LEXINGTON, Ky. (FOX 56) — Kentucky Power has officially announced its transition to new ownership.

The utility company, which caters to approximately 165,000 customers in 20 eastern Kentucky counties, will sell its ownership to Liberty Power.

The Kentucky Public Service Commission (PSC) approved the transaction on May 4. In the approval order, PSC emphasized that Liberty’s ownership of Kentucky Power is the “best path forward for customers, communities, and employees.”

Kentucky Power is now waiting for approval from the Public Service Commission of West Virginia and the Federal Energy Regulatory Commission before moving forward.

Luckily for customers, electric rates will decrease as a result of the transaction. The transition plan proposed by Liberty and American Electric Power (Kentucky Power’s parent company) will reduce customer bills through transition funds and temporary bill credits.