EKPC seeks rate increase: SKRECC applies for pass-through adjustment

For more information, contact:

Joy Bullock

Corporate Communications Coordinator

South Kentucky RECC’s Power Supplier Seeking Base Rate Increase:

East Kentucky Power Cooperative (EKPC), which generates and transmits wholesale electricity to South Kentucky RECC, is seeking to raise the base rates it charges South Kentucky RECC and 15 other Kentucky electric co-ops.

EKPC filed its application with the Kentucky Public Service Commission (PSC). If approved by the PSC, the proposal by EKPC will increase South Kentucky RECC’s rates and add about $3.99 or 3.76 percent to the monthly bill of the average residential member.

The proposed rate increase is from EKPC, not South Kentucky RECC, and any additional revenue from this rate increase will go to EKPC, not South Kentucky RECC.

EKPC needs a base rate increase to ensure there are sufficient margins to maintain financial strength and reliable service. If approved, it will mark EKPC’s first increase in base rates since 2011.

EKPC filed the rate-adjustment request on April 1. Therefore, South Kentucky RECC also filed an application with the PSC detailing how the adjustment would be passed through its monthly bills to the membership.

As a not-for-profit, member-owned organization, EKPC strives to keep rates steady by containing and reducing operating costs. One of the most effective ways EKPC has done that is by obtaining low-cost energy through PJM, a major regional energy marketplace. As a result of the efforts by South Kentucky RECC and EKPC to keep energy economical, the rates of South Kentucky RECC are competitive with neighboring utilities.

“We’ve worked hard over the past decade with our power supplier to manage costs and improve our cost-competitiveness with other electric utilities in Kentucky,” said Ken Simmons, president and CEO of South Kentucky RECC. “This has been accomplished despite the fact that South Kentucky RECC serves rural areas with an average of less than 10 members per mile of electric line, while Kentucky’s investor-owned utilities serve 25 customers per mile and municipal electric utilities serve 60 customers per mile.”

Together, South Kentucky RECC, EKPC and 15 other electric cooperatives are known as Kentucky’s Touchstone Energy Cooperatives. The cooperatives work together to promote economic development and bring jobs and investment to the communities they serve. Since 2015, the co-ops have been involved in economic development projects that promise to bring nearly 15,000 new jobs and over $6 billion in new investment to those communities.

In the past year, EKPC and its owner-member cooperatives launched a sustainability initiative to ensure the delivery of reliable, affordable and sustainable energy far into the future. As part of that effort, EKPC has set targets to reduce carbon dioxide emissions and increase renewables, and is working with its owner-member co-ops to develop strategies to meet evolving member expectations.

NOTICE

In accordance with the requirements of the Public Service Commission (“Commission”) as set forth in 807 KAR 5:001, Section 17 and 807 KAR 5:007, Section 3, of the Rules and Regulations of the Commission, notice is hereby given to the member consumers of South Kentucky Rural Electric Cooperative Corporation (“South Kentucky”) of a proposed rate adjustment. South Kentucky intends to propose an adjustment of its existing rates to reflect the wholesale rate adjustment of its wholesale supplier, East Kentucky Power Cooperative, Inc., pursuant to KRS 278.455(2), by filing an application with the Commission on April 1, 2021, in Case No. 2021-00118.  The application will request that the proposed rates become effective May 1, 2021.  The present and proposed rates for each customer classification to which the proposed rates will apply are set forth below:

The effect of the change requested, in both dollar amounts and as a percentage, for each customer classification to which the proposed rates will apply is set forth below:

The amount of the average usage and the effect upon the average bill for each customer classification to which the proposed rates will apply is set forth below:

A person may examine the application and any related documents South Kentucky has filed with the PSC at the utility’s principal office, located at:

South Kentucky Rural Electric Cooperative Corporation

200 Electric Avenue

Somerset, Kentucky 42501

(800) 264-5112

https://www.skrecc.com

A person may also examine the application: (i) at the Commission’s offices located at 211 Sower Boulevard, Frankfort, Kentucky 40601, Monday through Friday, 8:00 a.m. to 4:30 p.m.; or (ii) through the Commission's website at https://psc.ky.gov/Case/ViewCaseFilings/2021-00118 .  Comments regarding the application may be submitted to the Commission through its Web site or by mail to Public Service Commission, Post Office Box 615, Frankfort, Kentucky 40602.

The rates contained in this notice are the rates proposed by South Kentucky, but the Commission may order rates to be charged that differ from the proposed rates contained in this notice.  A person may submit a timely written request for intervention to the Commission at Post Office Box 615, Frankfort, Kentucky 40602, establishing the grounds for the request including the status and interest of the party. If the Commission does not receive a written request for intervention within thirty (30) days of initial publication or mailing of the notice, the Commission may take final action on the application.