Understanding Your Co-Op

At South Kentucky RECC, we believe informed members make a stronger cooperative. Below are answers to common questions about your electric service, how your bill is calculated, where your electric dollar goes, and how your cooperative operates.

Being a not-for-profit cooperative means South Kentucky RECC exists to serve its members — not to generate profits for shareholders.

Any revenues above operating costs are reinvested into maintaining and improving the electric system. Decisions are guided by what is best for the membership, with a focus on reliable service, financial responsibility, and long-term stability for the communities we serve.

South Kentucky RECC is governed by a board of directors elected by the membership. These directors live and work in the communities we serve and represent the interests of all cooperative members.

The board provides oversight and helps set the long-term direction of the cooperative. They work to protect the cooperative’s financial stability and ensure it remains strong, reliable, and committed to serving its members. While the board guides the cooperative’s overall strategy and operations, electric rates are regulated and approved by the Kentucky Public Service Commission.

As a distribution cooperative, we deliver electricity directly to homes and businesses in our service area.

A generation and transmission (G&T) cooperative — such as East Kentucky Power Cooperative (EKPC) — produces or purchases electricity and delivers it over high-voltage transmission lines to local distribution cooperatives like SKRECC.

In short, EKPC supplies the power, and SKRECC delivers it locally to members.

For every dollar you pay:

- About 72 cents goes to East Kentucky Power Cooperative (EKPC) to purchase power.

- The remainder stays at South Kentucky RECC to operate and maintain the local system.

That includes:

- Line maintenance and right-of-way clearing
- Storm restoration and outage response
- Equipment upgrades and system improvements
- Vehicles, fuel, and technology
- Employee salaries and training
- Community Involvement and educational support

Every dollar supports your electric service and helps strengthen the communities we serve.

South Kentucky RECC maintains more than 7,000 miles of local power lines, along with poles, substations, and other equipment that keep electricity flowing to our communities.

We respond to outages, maintain and upgrade infrastructure, and provide dependable service to our members — with a focus on reliability, safety, and meeting the needs of the communities we serve as a not-for-profit cooperative.

Most of your bill is based on the amount of electricity your meter records during the billing period. The more electricity you use, the higher your bill. When you use less, your bill decreases. Each bill also includes charges SKRECC is mandated to collect, including a school tax, Fuel Adjustment Clause (FAC) and an environmental surcharge. To fairly share in the expense of delivering electricity, every SKRECC member pays a Consumer Charge.

Learn More: Navigating Your Electric Bill - South Kentucky RECC

The Fuel Adjustment Clause reflects changes in the costs of fuels used to generate electricity, such as natural gas and coal. This does not include fuel for vehicles.

It is a direct pass-through charge. South Kentucky RECC does not keep any of these funds — all FAC charges go directly to East Kentucky Power Cooperative.

Because fuel prices fluctuate, the FAC may change from month to month:

· When fuel costs increase, the FAC appears as a charge.

· When fuel costs decrease, the FAC may appear as a credit on your bill.

The FAC ensures members pay the actual cost of fuel — no more and no less.

Emergency Notice: