South Kentucky RECC Approved for Rate Adjustment
South Kentucky RECC has been approved for a rate adjustment from the Kentucky
Public Service Commission (PSC).
In the order issued March 30, the PSC commended South Kentucky RECC for its
commitment to programs that encourage its members to manage energy demand and
improve energy efficiency. The PSC also praised the co-op for taking steps to
reduce outages during storms by stepping up the vegetation management, or
right-of-way, along its power lines.
South Kentucky RECCs residential consumer charge will change from $9.14
per month to $12.82, an increase of $3.68 per member per month. The usage
charge will remain unchanged at 8.54 cents per kilowatt hour. This means that
all members, regardless of how much electricity they use, will see the same
increase of $3.68 on their monthly bills. The overall increase amounts to about
Small commercial members will also see their consumer charge change from $17.14
to $23.79, but like the residential members, will see no increase in their
The consumer charge is applied to all accounts to help the co-op recover fixed
costs, which include the costs of poles, wires, metering, and all other
equipment necessary to get electricity to members residences or places of
business, based on a cost of service study.
The adjustment to consumer charges will begin appearing on members
current electric bills, since it went into effect on March 30.
The PSCs approval is slightly different than what South Kentucky RECC
originally requested, but SKRECC CEO Allen Anderson said this should still
satisfy revenue needs.
Considering the Commission made changes to our schedule of depreciation
and relaxed the importance for the rotation of capital credits during these
depressed economic times, the amount of revenue approved by the PSC will
satisfy our present needs.
Anderson added that this is only the second increase that the co-op has had in
South Kentucky RECC employees pride themselves on operating as
efficiently as possible and delaying the need for an increase as long as we
could and still meet our debt obligations. Inflation has caught up with us,
making this small increase necessary.Having a rate increase is one thing we
always try to avoid, because we know that it impacts our members and our
employees, as well, said Anderson.
It is important to know that, South Kentucky RECC offers an array of programs
that can help members manage their energy costs. These include
energy-efficiency programs, such as Button-Up, Tune-Up, and home energy audits
that have helped hundreds of members reduce electricity consumption and save
money. The co-op also offers a levelized billing option, which will assist
members when budgeting for their electricity costs. Members can call South
Kentucky RECC to learn more about these and other opportunities to save money
and perhaps increase the value of their homes.
Its also worth remembering that electricity remains a good deal
especially in Kentucky, which has the 4th lowest average electric rates in the
Anderson said, I have confidence that it will always be our top priority
to properly balance providing reliable electric service, while keeping costs as
low as possible.