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The Kentucky Public Service Commission has issued an order granting Owen Electric Cooperative Inc. a rate adjustment that will increase its annual revenue by $3.84 million, or about 3.1 percent.
With the increase, Owen Electric’s annual revenue will be $129.8 million.
Owen Electric applied to the PSC for the rate increase in Aug. 2008. A public hearing on the application was held March 25.
Owen Electric has about 56,800 residential and commercial customers in Boone, Campbell, Carroll, Gallatain, Kenton, Owen, Pendleton and Scott counties. It is one of 16 distribution cooperatives that both own and purchase power from the East Kentucky Power Cooperative.
In the order, the PSC detailed the adjustments it had made to Owen Electric’s request for annual revenue of just over $130 million. The new rates took effect June 25.
The PSC also directed Owen Electric to submit by the end of the year its plans for reducing the demand for electricity and improving energy efficiency on the part of its customers.
This is Owen Electric’s first general rate increase since 1982.
For Owen Electric’s residential customers, this increase comes in the form of a higher monthly charge. It will increase by $4.86. The charge per kilowatt-hour (a kilowatt-hour is the amount of electricity used by a 100-watt light bulb in 10 hours) is changing slightly.
The monthly residential customer charge is the portion of the total rate that typically reflects a utility’s fixed costs, such as personnel, meter reading, or billing. Fixed costs do not vary with the amount of electricity consumed.
For a residential customer using 1,000 kilowatt hours per month, the new rates will increase the base monthly bill by $5.16 – from $86.31 to $91.47 – a 6-percent increase.