The Kentucky Public Service Commission has approved a rate increase proposed by East Kentucky Power Cooperatives Inc. (EKPC) that will raise the cooperative’s annual revenue by $43 million.
Winchester-based EKPC operates 16 member distribution cooperatives that have more than 500,000 customers in 87 eastern and central Kentucky counties. EKPC generates electricity at four plants and operates 2,755 miles of high-voltage transmission lines.
The increase will raise the average residential customer’s monthly bill by $3.94 to $5.85, depending on the cooperative. (The amounts vary because of differences in the operating conditions and customer base of each cooperative.)
EKPC President and CEO Tony Campbell said the rate increase will help EKPC increase equity, which, he said, is vital in the capital-intensive electric utility industry.
The rate increase was approved with the provision that if the higher rates produce revenues above a certain level, the excess revenues will be refunded to retail customers and EKPC will file an application to adjust its rates.