State, Eastern Kentucky Power reach rate increase agreement

FRANKFORT, Ky. (WTVQ) –  East Kentucky Power Cooperative has reached an agreement for lower rate increases than the company initially sought, saving more than 500,000 customers some $17.7 million from what originally was proposed.

The agreement still must be approved by the state’s Public Service Commission.

The agreement was announced by Attorney General Cameron whose Office of Rate Intervention reached the deal. State law charges the attorney general’s office with representing ratepayers in utility cases.

The proposed settlement was agreed to by EKPC and all intervening parties, including Nucor Steel Gallatin and AppHarvest Morehead Farm LLC, which are major electric customers.

In April of this year, EKPC filed an application with the PSC seeking a rate increase that would affect 545,000 Kentucky homes, farms, and commercial and industrial entities in 87 counties. If the PSC approves the settlement, the average residential customer will see a rate increase of 2.76 percent to 3.94 percent per month, with most rate increases remaining below 3.5 percent.

The settlement saves Kentuckians $17.756 million, $10.641 million from reducing base revenue requirements, and $7.115 million as the result of reduced monthly environmental surcharges.

The settlement also requires EKPC to institute an earnings-sharing mechanism until their next rate case, which could create additional savings for customers in the form of bill credits. The credit amount will be determined annually based on excess revenue and will be reported to the PSC.

The settlement was filed with the PSC and was signed by EKPC, Nucor, AppHarvest, and the Attorney General’s Office.

The settlement is pending final approval by the PSC and can be viewed here.