Customers of Jackson Purchase Energy Corporation will see their electricity bills increase by about $22 dollars next month.
That’s because a $52 million dollar bill stabilization fund to alleviate costs on JPEC's 29,600 members in six western Kentucky counties is now nearing depletion.
The money was a collective fund established in 2009 between JPEC and Big Rivers Electric’s other distribution cooperatives Kenergy and Meade County Rural Electric.
JPEC President Dennis Cannon says the money, which appeared as bill credits on customers’ statements, began to run out faster after Big Rivers, a coal-fired electricity provider, lost its biggest contract with Century Aluminum smelters in 2013.
“And when that happened, Big Rivers had to increase its rates to the three distribution cooperatives in order to keep the company financially solvent," said Cannon. "And in turn, we as Jackson Purchase were required by the PSC to pass that rate increase along to our members.”
Homes, farms, churches and schools will see about a 17.5 percent bill increase starting in October. This increase is the second scheduled after bill amounts on non-residential customers went up in November 2015.
Jackson Purchase Energy -- Bill Credit Information -- 9-9-2016
Both increases were previously stipulated in agreement with the Kentucky Public Service Commission.
Cannon says JPEC’s electricity rates are not affected by the change and remain competitive with neighboring energy providers.
“Jackson Purchase’s rates have been the same for over two years and the last time Jackson Purchase increased its rates, it did so as a result of an increase from Big Rivers," said Cannon.
Cannon says rural electric co-ops in Kentucky depend on coal for 95% of electricity needs. And while coal prices do have a return effect on rate-payers, the main driver of price continues to be the cost of cooperatives remaining compliant with federal EPA regulations.
"We spend millions of dollars every year to comply with the various laws and regulations on the books... and we do so very well, but it does come at a cost," said Cannon. "
Cannon advises customers to look into JPEC’s bill management services, rebate programs and incentives for installing heat pumps to keep bills low, especially during the upcoming winter months.
