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Residential customers of Owen Electric can expect an increase on their next electric and utility bill after the Kentucky Public Service Commission recently accepted a proposed settlement in a rate-adjustment case.
According to a PSC press release, typical residential customers will see an increase of about $5 on their monthly bills, although the increase will vary based on individual electric usage.
Under the settlement, the added revenue will come entirely through an increase in the usage charge of each kilowatt-hour of electricity. A kilowatt-hour is the amount of electricity used by a 100-watt light bulb in 10 hours.
The PSC approved the settlement in an order issued Friday and allowed the new rates to take effect Sept. 1.
The settlement grants a $4 million increase in annual revenue for Owen Electric, which is about $74,000 less than its original request and 1.07-million less than a subsequent revised request.
The companies annual revenue will increase by about 2.7 percent.
The monthly customer charge for residential and farm customers was set to increase on Sept. 1 from the current $14.20 to $17.10 with a corresponding decrease in the charge per kilowatt-hour. Under the settlement, the charge per kilowatt-hour now will increase as well.
A further shift of revenue to the monthly customer charge from the usage charge is scheduled to take effect on March 1, 2015. For a typical residential customer, the change will have a minimal effect on the total monthly bill beyond the increase taking effect in the current case.
Owen Electric filed its application for a rate adjustment on March 12, indicating it needed an additional $4.07 million in revenue to maintain its financial integrity and comply with its loan agreements. The utility subsequently increased its request to $5.07 million.
The company has about 57,500 customers in nine counties in north-central Kentucky. It is one of 16 cooperatives that own and purchase power from the East Kentucky Power Cooperative Inc.