Kenergy customers could be paying more for utility rates by the middle of next year if a request filed Friday, October 30th, is approved by the Kentucky Public Service Commission.
During a news conference Monday afternoon in Henderson, Kenergy’s President and CEO Jeff Hohn said this is the first rate increase the electric distribution cooperative has sought since 2011. At that time, he notes the PSC approved a 2.87 percent increase.
If the PSC approves Kenergy’s proposal, Hohn indicated the new rate would take effect next year and would increase the average residential bill by nearly $4 a month.
During the news conference, he said the decision to raise rates is always a difficult one.
Hohn said the main driver for the proposed increase is depreciation expense.
He noted that Kenergy has taken these measures to cut costs since the last rate increase in 2011:
In addition, Kenergy has reduced the co-op’s vehicle fleet size from 2011 to 2014 with two more vehicles scheduled to be cut next year.
And, Hohn said they have changed the way it provides fire-retardant uniforms and other life-saving clothing to line techs and servicemen indicating an expense decline of 41.5 percent between 2011 and 2014.
In addition to cutting costs, he added that the cooperative generated new revenue since the last rate increase by leasing cell tower space to large telecommunications companies, increasing Kenergy’s income by 55-thousand dollars annually.
Kenergy services more than 56,000 meters in all or parts of 14 western Kentucky counties, including Crittenden, Henderson, Union and Webster.