Journal-Times (Grayson, KY)

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January 9, 2013

Olive Hill electric rate study explained, scrutinized

Jan. 9, 2013 — The Olive Hill City Council met in a special working session Monday with a representative from Power Systems Engineering, Inc. (PSE) to ask questions about a recently conducted electric rate study.

Jeff Laslie was on hand from the Wisconsin-based firm to field comments and concerns from council members, the public and the media about proposed changes to the electric rates – specifically how those changes would affect monthly customer bills.

At the meeting’s outset, Council member Glenn Meade questioned the study procedure, citing a paragraph from the study findings stating, “detailed plant investment data is not available which made it necessary for PSE to make some assumptions in order to complete this study.”

“How can we make assumptions? We’re doing a disservice by not having that data,” said Meade.

Laslie countered by stating, “We don’t have that data because the city doesn’t maintain that data. The city did provide us with some information, but it wasn’t in the kind of detail that we ordinarily like to see.”

Under the proposed rate schedule suggested by the study, residential customers would pay a flat fee each month of $8.25 and a usage rate of approximately $10.23 cents per 100-kilowatt hours.

Commercial customers would pay a flat fee of $10.25 per month with a usage rate of approximately $10.80 per 100-kilowatt hours, and industrial customers would pay a flat fee of $25 per month with a usage rate of approximately $10.39 per 100-kilowatt hours and a demand charge of $2.50 per demand kilowatt hour.

According to the city’s existing electric rate ordinance, residential customers are charged a flat fee of $6 per month and a usage rate of $5 per 100 kilowatt hours, with a $12 flat rate for commercial businesses and a $14 flat rate for industrial customers -- both of whom are charged a usage rate of $6 per 100 kilowatt hours.

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