Office of the Attorney General
Attorney General Greg Stumbo Announces Agreement With East Kentucky Power Cooperative Saves Customers Approximately $5 Million
Attorney General Stumbo filed an agreement for approval with the Public Service Commission today in which his office, along with the Kentucky Industrial Utility Customers, reached a settlement in a case with East Kentucky Power Cooperative, Inc.
East Kentucky had filed a case before the Public Service Commission requesting an increase of approximately $43.4 million. Instead, under the terms reached in the agreement, the Attorney General and other parties settled at a rate increase of $38.5 million, or approximately $5 million less than originally demanded by the company.
The company’s last general rate increase was 24 years ago. “While any increase is difficult to bear for our citizens, the company has demonstrated that a number of unforeseen events have caused financial distress on East Kentucky’s operations. Without the increase, the company’s ability to provide reliable service may suffer,” said Stumbo.
Stumbo emphasized to East Kentucky and other utilities that due diligence must always be exercised to maintain the reliability of the electric system. “While I insist that electric companies make every effort to keep their rates low, I likewise require effective contingency plans so that Kentuckians have safe, adequate and reliable service,” said Stumbo.
A hearing in the case will be conducted by the Public Service Commission on September 5th at 9:00AM.
East Kentucky Power Cooperative provides power to 16 distribution member cooperatives which in turn serve over one million customers in 89 Kentucky counties.