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.
