East Kentucky Power Cooperative seeks rate increase
East Kentucky Power Cooperative (EKPC), which generates and transmits wholesale electricity to Grayson RECC, is seeking to raise the base rates it charges Grayson RECC and 15 other electric co-ops.
EKPC filed its application with the Kentucky Public Service Commission (PSC). If approved, the proposal by EKPC will increase Grayson RECC’s rates and add about $4.36 or 2.86 percent to the monthly bill of the average residential member.
The proposed rate increase is from EKPC, not Grayson RECC, and any additional revenue from this rate increase will go to EKPC, not Grayson RECC. The request is not in response to this year’s storm damage.
EKPC needs a base rate increase to ensure there are sufficient margins to maintain financial strength and reliable service. If approved by the PSC, it will mark EKPC’s first increase in base rates since 2011.
EKPC filed the rate-adjustment request on April 1. Grayson RECC also filed an application with the PSC detailing how the adjustment would be passed through its monthly bills to the membership.
Please bear in mind that the wholesale power component of your electric bill is about 54 percent. The remaining funds are used by Grayson RECC to maintain and operate its system and to cover other costs.
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 effort by our co-op and EKPC to keep energy economical, Grayson RECC’s rates are competitive with neighboring utilities.
For a link to Grayson’s rate adjustment case with the Kentucky Public Service Commission, click here