$52 Million Fund for Reducing Jackson Purchase Energy Bills Nears Depletion - Homes, Farms, Churches, and Schools Affected

September 09, 2016

Co-op Offers Members Resources to Reduce Bills

A rate stabilization fund that has offset $52 million in electric costs for Jackson Purchase Energy Corporation members over the past seven years is nearing depletion.

The diminishment of the fund means that electricity bills for homes, farms, churches, and schools served by JPEC will increase in October.

According to Dennis L. Cannon, JPEC’s president and CEO, residential members will see their bills increase by about 17.5%, or $22, per month.  Churches, farms, and schools will see a similar percentage increase.  All other non-residential JPEC members saw their bills increase in November of 2015.

“The rate stabilization fund has protected our members from higher bills for seven years,” said Cannon.  “During that time, JPEC members’ bills were reduced by roughly $52 million over what they would have been without the fund.  In 2015 alone, JPEC members’ bills were offset by $12 million – including an average of about $260 per residential member.

“Although bills are going up, JPEC still offers competitively priced electricity.  Even with the loss of the credits, JPEC’s residential rates are equal to or lower than most of the electric utilities in our area.  Furthermore, JPEC’s residential rates are 5.8% lower than the national average.

“It’s important to understand that JPEC is not benefiting from this one bill increase by one penny.  JPEC is collecting the exact same amount of revenue as before.

“On the other hand, as the electricity portion of the bill increases, the 3% school tax amount for all accounts and the 6% sales tax amount for non-residential accounts will increase, too.  These higher taxes do not benefit JPEC, either.”

According to Cannon, the co-op offers a number of resources to its members to help them reduce their electricity bills.

“JPEC offers energy efficiency rebate programs for our residential and non-residential members,” said Cannon.  “Furthermore, we offer a levelized billing service that helps residential members reduce the seasonal swings in their power bills.  Information about those programs is available on our website – www.jpenergy.com.”

Although bills are going up now, Cannon expressed optimism that JPEC and Big Rivers Electric may increase the flow of bill credits in the future.

“A contributing factor to improving the flow of credits for our members is increased power sales for Big Rivers.  That’s why the recently announced contracts for long-term sales of power to a number of cities in Kentucky and Nebraska are important.  As Big Rivers experiences success in the wholesale power market, our members should enjoy financial benefits.”

JPEC serves approximately 29,600 members in portions of six western Kentucky counties -- Ballard, Carlisle, Graves, Livingston, Marshall, and McCracken.  The co-op is in its 78th year of operations.

Headquartered in Paducah, JPEC is a Touchstone Energy Cooperative, and is a member of a network of more than 900 electric cooperatives nationwide. Additional information about JPEC may be found at www.jpenergy.com.

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For a flow chart breakdown of the above click here.

 

 

 

 

 

 

 

 

 

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