To your cooperative

  East Kentucky Power Cooperative (EKPC), which generates and transmits wholesale electricity to Big Sandy RECC, is seeking to raise the base rates it charges Big Sandy RECC and 15 other electric co-ops. 

EKPC filed its application with the Kentucky Public Service Commission (PSC). If approved, the proposal by EKPC will increase Big Sandy RECC’s rates and add about $4.20 or 3.32 percent to the monthly bill of the average residential member. 

The proposed rate increase is from EKPC, not Big Sandy RECC, and any additional revenue from this rate increase will go to EKPC, not Big Sandy RECC. The request is not in response to this year’s storm damage, and the proposal has nothing to do with the rate increase of Kentucky Power.

EKPC needs a base rate increase to ensure there are sufficient margins to maintain financial strength and reliable service. If approved by the PSC, it will mark EKPC’s first increase in base rates since 2011.

EKPC filed the rate-adjustment request on April 1. Big Sandy RECC also filed an application with the PSC detailing how the adjustment would be passed through its monthly bills to the membership. 

Please bear in mind that the wholesale power component of your electric bill is about 62percent. The remaining funds are used by Big Sandy RECC to maintain and operate its system and to cover other costs. 

As a not-for-profit, member-owned organization, EKPC strives to keep rates steady by containing and reducing operating costs. One of the most effective ways EKPC has done that is by obtaining low-cost energy through PJM, a major regional energy marketplace. As a result of the effort by our co-op and EKPC to keep energy economical, Big Sandy RECC’s rates are competitive with neighboring utilities.