FRANKFORT – The Kentucky Public Service Commission (PSC) has approved a request by Grayson Rural Electric Cooperative Corporation (Grayson RECC) for a rate increase that will allow the utility to maintain its financial stability.
In an order issued Wednesday, the PSC authorized Grayson RECC to raise rates to generate additional annual revenue of $1.93 million. The allowed increase is about $130,000 less than the amount requested by the utility.
The monthly service charge for residential and farm customers will increase to $15, which is $4.65 more than the current charge of $10.35 per month. The cost of electricity will rise from 10.427 cents per kilowatt-hour to 10.910 cents per kilowatt-hour.
It is only the co-op’s second rate increase since 1998. Another was approved in 2008.
Carol Fraley, president and CEO of Grayson RECC, said she was “well satisfied” with the PSC’s approval order and that she did not object to the negative comments about financial management.
“The Public Service Commission has always treated us fairly because they understand the challenges we face,” she said. “They know that we waited as long as we could before asking for this rate increase and that we have maintained our staffing level for reasons of safety and efficiency.”
For a customer using 1,000 kilowatt-hours per month (a kilowatt-hour is the amount of electricity used by a 100-watt light bulb in 10 hours), the total monthly bill (excluding surcharges) initially will increase by $9.48, to $124.10. That is about 8.3 percent higher than the current monthly bill of $114.62.
Grayson RECC serves about 15,400 customers in six counties – Carter, Rowan, Elliott, Lewis, Lawrence, and Greenup.
It is among 16 cooperatives that own and purchase power from the East Kentucky Power Cooperative, Inc. (EKPC).