What EKPC’s rate increase could mean for Farmers RECC members

Because EKPC supplies electricity to 16 member cooperatives, including Farmers RECC, the increase is expected to “flow through” to local utilities and ultimately customers.

What EKPC’s rate increase could mean for Farmers RECC members
Photo by Andrés Giménez / Unsplash

GLASGOW, Ky. — Electric rates for members of Farmers Rural Electric Cooperative Corporation could soon change following a newly approved increase for its wholesale power supplier, though the exact impact remains unclear.

The Kentucky Public Service Commission on April 23 issued a final order in a rate case involving East Kentucky Power Cooperative, approving a nearly 6% increase in revenue, about $63.7 million, for the Winchester-based generation and transmission cooperative.

Because EKPC supplies electricity to 16 member cooperatives, including Farmers RECC, the increase is expected to “flow through” to local utilities and ultimately customers.

East Kentucky Power Cooperative supplies wholesale electricity to 16 owner-member distribution cooperatives across the state. (EKPC)

Farmers RECC spokesperson Caralyne Pennington said the cooperative is still waiting on its own rate order before determining how members will be affected.

“Our flow-through case has not yet been approved, so we don’t know the impact to Farmers RECC members yet,” Pennington said in an email.

According to the PSC, decisions on the 16 member cooperatives’ pass-through rate requests are expected “over the next few days,” though no specific timeline has been given.

Pennington said the process is standard for regulated utilities in Kentucky. When a wholesale supplier like EKPC adjusts its base rates, each member cooperative must file a corresponding adjustment to reflect the change.

“We are a regulated utility, as is our power supplier,” she said. “All of our rates must be approved by the Public Service Commission. Until they issue an order, we don’t know how our rates will be impacted.”

EKPC had originally requested a 7.49% increase, but the PSC approved a slightly lower figure through a modified settlement agreement.

The commission also rejected part of the proposal that would have automatically adjusted rates based on earnings, citing concerns about potential bill increases without sufficient oversight.

Once approved, any new rates are scheduled to take effect May 1.

EKPC provides power to more than 570,000 customers across 89 Kentucky counties through its member cooperatives, including residential, agricultural and industrial users.


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