Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster

PSC Adjusts Rates for Big Rivers Electric Corp

BIG rIVERS 300FRANKFORT, Ky. (10/30/13) – The Kentucky Public Service Commission (PSC) today adjusted the revenue and rates of Big Rivers Electric Corp. to reflect the departure of the utility’s largest customer, the Century Aluminum smelter in Hawesville.

Although the total revenue for Big Rivers is declining, rates for the remaining customers will increase, but not by as much as the utility requested.

In an order issued today, the PSC authorized Big Rivers to receive an additional $54.2 million annually from the remaining customers. That is about $20 million less than the amount sought by Big Rivers.

In orders also issued today, the PSC approved pass-through rate increases for the three electric distribution cooperatives that purchase power from Big Rivers – Jackson Purchase Energy Cooperative, Kenergy Corp. and Meade County Rural Electric Cooperative Corp. The Meade County order also adjusts that utility’s base rates.

On average, residential customers will see monthly bills increase by about $17 per month, but the actual size of any increase will vary depending on which distribution cooperative serves that customer and on individual usage patterns.

Big Rivers had applied to increase annual revenue by $74.5 million. As allowed under Kentucky law, Big Rivers and the three distribution cooperatives put their proposed rates into effect on Aug. 20 and began billing at the higher rates.

Customers of Big Rivers and the distribution cooperatives will receive refunds, with interest, of the difference between what they paid under the proposed rates and the rates approved by the PSC, which were ordered effective as of August 20, 2013.

Big Rivers is owned by the three distribution cooperatives to which it provides power. Together, the three cooperatives serve about 112,000 customers in 26 counties in western Kentucky. The remaining customers include about 20 large industrial facilities.

Century Aluminum’s Hawesville smelter stopped purchasing power from Big Rivers on Aug. 20, the effective date of a contract allowing it to buy power on the open market. The contract was approved by the PSC on Aug. 14. The Hawesville smelter consumed about 40 percent of the power generated by Big Rivers, and a slightly larger share of total revenue.

The case decided today does not address the impending loss of Big Rivers’ second-largest customer, the Century Aluminum smelter in Sebree. It accounts for about 40 percent of Big Rivers’ remaining load and is scheduled to depart the system in January.

Century Aluminum has said it intends to seek a power arrangement for the Sebree smelter that is similar to the one negotiated for the Hawesville facility.

Big Rivers filed another rate application in June 2013 to account for the loss of the Sebree smelter revenue. That rate application is currently being processed with a decision expected in 2014.

Of the $74.5 million revenue adjustment sought by Big Rivers, $63 million was to partly offset the loss of revenue from the Hawesville smelter. The utility said that the remaining $11.5 million is needed for Big Rivers to maintain financial stability and meet its debt obligations.

In trimming the revenue increase by $20 million, the PSC made several adjustments. The largest of those lowered depreciation expenses and reduced Big Rivers’ operating margins.

In addition to Big Rivers, parties to the case included the Kentucky Office of Attorney General; the Kentucky Industrial Utility Customers, Inc., representing three large customers; the Sierra Club; and the three distribution cooperatives.

The PSC held public meetings on the case in June in Brandenburg, Henderson, Owensboro and Paducah. The evidentiary hearing in the case was held in Frankfort on July 1-3.

Today’s orders, videos of the meeting and hearing and documents in the case are available on the PSC website. The case number is 2012-00535.

The Big Rivers application and other documents in the second rate case also may be found at psc.ky.gov. The case number is 2013-00199.

The PSC is an independent agency attached for administrative purposes to the Energy and Environment Cabinet. It regulates more than 1,500 gas, water, sewer, electric and telecommunication utilities operating in Kentucky and has approximately 90 employees.
 
SurfKY News
Information provided by Andrew Melnykovych, Kentucky Public Service Commission

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

3/13 - 16
3/13 - 16
button coupons

Stock Report

1 DOW 17,804.80
+26.65 (0.15%)    
2 S&P 2,070.65
+9.42 (0.46%)    
3 NASDAQ 4,765.38
0.00 (0.00%)    
3/13 - 16
3/13 - 16
button classifieds

In Other News...

KET’s Kentucky Life Segment to Feature Old Airdrie Furnace at Paradise

MUHLENBERG COUNTY, Ky. (12/20/14) ― In November of this year, producers from KET TV were part of a group allowed a… Read More

Land Between the Lakes Upcoming Programs and Events

KENTUCKY (12/20/14) — The following are the upcoming programs and events at Land Between the Lakes: Dec. 17 - 23 Daily… Read More
3/13 - 16

Most Read This Week

December 16, 2014 10591

Coal Miner Fatally Injured in Underground Mining…

in Top News For All Sites by Dick Brown
December 17, 2014 7506

Elderly Couple Found Shot to Death in Muhlenberg

in Local (Muhlenberg) Top News by Trooper Stu Recke
December 17, 2014 6763

Three Men Charged with Burglary

in Local (Hopkins) Top News by Madisonville Police Department
December 15, 2014 5090

Hopkins County Woman Charged Second Time in Two…

in Local (Hopkins) Top News by Charles W. Riley II, SurfKY News
December 15, 2014 4542

Woman Leads Police on High-Speed Chase in Stolen…

in Local (Hopkins) Top News by Madisonville Police
December 19, 2014 4327

Dawson Springs Man Charged with Sexual Abuse of…

in Local (Hopkins) Top News by Detective Sean McCance
December 19, 2014 4146

Armstrong Mine to Layoff 39 by End of Day

in Top News For All Sites by Rita Dukes Smith, SurfKY News Director
December 18, 2014 4086

Cat Scratching over Dog Ownership Escalates

in Local (Hopkins) Top News by Amber Averitt, SurfKY News
December 19, 2014 3906

Woman Flown to St. Mary's after Two-Car Collision

in Local (Hopkins) Top News by Trooper Stu Recke
December 16, 2014 3740

Highway Crews Pre-Treating Roadways for Potential…

in Hopkins News by Keith Todd

Stories Trending Today

December 19, 2014 3209

Vehicle Fire Causes Traffic Back-Up on Pennyrile

in Local (Hopkins) Top News by Doreen Dennis
December 19, 2014 1238

Greenville Mayor Honored during Final Council…

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
December 20, 2014 1103

KET’s Kentucky Life Segment to Feature Old…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
December 20, 2014 941

New Trial Sites Added for U of L's Brown Cancer…

in General News For All Sites by Health Sciences News
December 20, 2014 866

Farmers' Markets, Vendors; Sign Up for Free…

in General News For All Sites by Ted Sloan
December 20, 2014 857

WKU Public Affairs Claims 17 Statewide Awards

in General News For All Sites by WKU News
December 20, 2014 840

'When the Universe Was Young' Opens Jan. 4 at…

in General News For All Sites by WKU News
December 20, 2014 829

Happenings and Meetings - Hopkins County

in Hopkins News by Amber Averitt, SurfKY News
December 20, 2014 827

Law Enforcement Officers, Agencies Honored for…

in General News For All Sites by Erin Eggen
December 20, 2014 772

City of Madisonville Holiday Schedule

in Hopkins News by Leslie Curneal

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss