PEC Board Applauds PSC Action on Electric Rate Surcharge

October 10, 2012

The board of directors of Jackson Purchase Energy Corporation (JPEC) says it is pleased with the recent settlement approved by the Public Service Commission that will limit rate increases for funding of pollution control projects.

The PSC settlement was with Big Rivers Electric Corporation, which is owned by JPEC and two other western Kentucky electric cooperatives.

The settlement means that JPEC’s 30,000 residential and business customers in 22 counties will see only a 3.6 percent increase in the environmental surcharge on electric bills beginning in 2018. Before the settlement, the surcharge increase was going to be four times that much.

The limited increase results from a federal court decision that struck down some of the coal plant emission regulations that were set to go into place, and reduced the cost of those pollution control projects on Big Rivers plants from approximately $283.5 million to $58.5 million.

“This settlement is welcome news to our ratepayers,” said JPEC board chair Gary Joiner. “We all are in favor of producing electricity as efficiently and cleanly as possible, but we believe a balanced approach to environmental regulationisappropriate. Thissettlementseemstoreflectthatbalance.”

The $58.5 million in pollution control equipment on Big Rivers coal-fired plants will be funded until
2018 by special reserve funds set aside in 2009 to help rural ratepayers meet the expected cost of environmental improvements. When those funds are spent, the 3.6 percent increase in the environmental surcharges on JPEC customers’ electric bills will kick in. 

Background Image