The Wayne County Outlook

November 4, 2010

PSC sets public meetings in East Kentucky Power Cooperative rate case


CNHI

11-10-10 —     The Kentucky Public Service Commission (PSC) will hold public 

meetings in Somerset, Morehead, Nicholasville and Bardstown to  

receive comments on the request for a rate increase by the East  Kentucky Power Cooperative, Inc. (EKPC) and the resulting pass-

through rates to the 16 electric distribution cooperatives which own  EKPC and to which it provides electricity.

    “These meetings will allow the PSC to hear directly from the public as it prepares to consider whether the proposed new rates are fair,  

just and reasonable,” PSC Chairman David Armstrong said.

    Local and area residents can attend the meeting that will be held in Somerset on Thursday, Nov. 4 at 6 p.m. EDT, Meece Hall Auditorium,  

Room 120, Somerset Community College, 808 Monticello Street.

    EKPC’s 16 member distribution cooperatives have over 500,000 

customers in 87 counties in eastern and central Kentucky. EKPC  

generates electricity at four plants and operates 2,755 miles of high-

voltage transmission lines.

    EKPC is proposing to increase its wholesale rates by 5.27 percent in 

order to generate additional annual revenue of $49.4 million. Once  

passed through to the distribution cooperatives, the proposed higher  

wholesale rate would increase the typical residential customer’s  

monthly bill by $4.60 to $5.67, depending on the cooperative.

    The amounts vary because of differences in the operating conditions 

and customer base of each cooperative.

    The EKPC application, pass-through rate applications for the 

distribution cooperatives and related documents are available on the  

PSC website, psc.ky.gov. The case numbers are 2010-00167 for EKPC and  

2010-00168 through 2010-00183 for the distribution cooperatives.

    In response to public input at previous rate case meetings, the PSC 

has changed the format for public meetings.

    The EKPC meetings will begin with a presentation by the utility, 

followed by an opportunity for the public to ask questions. The  

parties intervening in the case—the Kentucky Office of Attorney  

General and Gallatin Steel Co.—also will have an opportunity to make  

presentations and answer questions.

    Members of the public then will be invited to make comments to the PSC.

    Written comments will be accepted at the meeting. Written comments 

also may be mailed to the PSC at P.O. Box 615, Frankfort, KY 40602,  

faxed to 502-564-9625 or e-mailed from the PSC website.

    The evidentiary hearing in the cases will be combined into a single 

proceeding, to be held at the PSC offices at 211 Sower Boulevard in  

Frankfort on Tuesday, Nov. 30, beginning at 10 a.m. EST. The hearing  

will be open to the public, but there will be only limited  

opportunity for public comments. Written comments will be accepted  

through the conclusion of the hearing.

    The evidentiary hearing may be viewed live on the PSC website.

    The PSC is an independent agency attached for administrative 

purposes to the Energy and Environment Cabinet. It regulates more  

than 1,500 gas, water, sewer, electric and telecommunication  

utilities operating in Kentucky and has approximately 100 employees.

    Following is a list of cooperatives and estimated rate impacts 

(estimated increase in the average monthly residential bill).

    Big Sandy RECC, $5.61

    Bluegrass Energy Coop. Corp., $5.67

    Clark Energy Coop., $4.87

    Cumberland Valley Electric, $5.42

    Farmers RECC, $5.13

    Fleming-Mason Energy, $5.23

    Grayson RECC, $5.33

    Inter-County Energy Coop., $5.30

    Jackson Energy Coop., $5.45

    Licking Valley RECC, $4.60

    Nolin RECC, $5.33

    Owen Electric Coop., $5.07

    Salt River Electric, $5.49

    Shelby Energy Coop., $4.76

    South Kentucky RECC, $4.92

    Taylor County RECC, $5.05