SKRECC seeking rate adjustment

South Kentucky RECC has filed an application with the Public Service Commission requesting an overall revenue adjustment of 7.7%.

As proposed, the increase would take place over a two-year period in an effort to lessen the full effect of the adjustment on South Kentucky RECC members, according to a company spokesperson.

The first year, as proposed, would increase the average residential account by about $4.74 per month. The second year, an average residential account would increase approximately $4.75 per month.

If the Kentucky Public Service Commission approves the adjustment, a 30-day notification period will follow before the new rates go into effect. Members can therefore expect to see the adjustment, if approved, on their bills sometime mid-2022.

South Kentucky RECC services around 10,500 customers in Russell County.

SKRECC has not increased its rates in 10 years, and CEO Ken Simmons says it is not a decision that is made lightly. According to Simmons, roughly 71% of the co-op’s total cost is to purchase power from its power supplier, East Kentucky Power. Simmons says the remaining 29% of the co-op’s total cost is what remains for operations.

Rates must generate enough revenue to meet the requirements of the primary lending agency, Rural Utilities Service (RUS, formerly known as REA). Co-ops like South Kentucky RECC are required to generate enough revenue to service the debt requirements and to adequately operate the electric system.

About Zac Oakes 2837 Articles
Zac Oakes is the News and Sports Director for LakerCountry.com and Laker Country WJRS 104.9 FM.