Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

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.

In Other News...

Join in the Fun at the 41st Annual Piney Campers' Fair

GOLDEN POND, Ky. (8/31/14) — Piney Campground at Land Between The Lakes will host its 41st Annual Campers' Fair Sept.… Read More

NAMI Support Group Hosting Centerstone Meeting in September

MURRAY, Ky. (8/30/14) — The Mental Illness Support Group for families and friends of persons suffering from mental… Read More

Most Read This Week (Site-Wide)

August 29, 2014 8097

Luke's Flea Market Vendors' Home Away…

in News by Charles W. Riley II, SurfKY News
August 28, 2014 7439

Police Pursuit Spans Parts of Northern…

in Top Stories by Alex Piper, MCSO
August 30, 2014 7216

One Hospitalized After Officer-Involved…

in Top Stories by Charles W. Riley II, SurfKY News
August 29, 2014 3802

Business Spotlight - Magical Memories…

in Top Stories by Charles W. Riley II, SurfKY News
August 28, 2014 3483

Another Greenville Home Invasion Being…

in Top Stories by Wes Miller, GPD

Most Read Stories from Hopkins County

August 30, 2014 3154

Ponderosa Madisonville to Donate 10…

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 30, 2014 1261

City of Madisonville Says 'Goodbye' to…

in Top Stories by Amber Averitt, SurfKY News
August 29, 2014 867

MCC Announces New Board Members

in Top Stories by Joyce Riggs
August 29, 2014 561

Trover Health Endowment Reaches $100,000…

in Top Stories by Joyce Riggs
August 28, 2014 459

Ceremony Honors Webster County WWII…

in Top Stories by Ami Clayton, SurfKY News

Most Read Stories from Owensboro

August 29, 2014 2436

Daviess County Sheriff’s Office Activity…

in News by Dennis Beard, SurfKY News
August 29, 2014 2374

Owensboro Police Department Activity…

in News by Dennis Beard, SurfKY News
August 28, 2014 2031

Downtown Trolley to Run on Labor Day

in News by Abby Shelton
August 30, 2014 1496

Owensboro Traffic Advisory

in News by Keith Todd
August 28, 2014 1318

Daviess County Sheriff’s Office Activity…

in News by Dennis Beard, SurfKY News

Most Read Stories from Muhlenberg County

August 28, 2014 7439

Police Pursuit Spans Parts of Northern…

in Top Stories by Alex Piper, MCSO
August 29, 2014 3802

Business Spotlight - Magical Memories…

in Top Stories by Charles W. Riley II, SurfKY News
August 28, 2014 3483

Another Greenville Home Invasion Being…

in Top Stories by Wes Miller, GPD
August 28, 2014 2218

Whitfield, Yonts Pay Tribute to Bob and…

in Top Stories by Paul McRee, SurfKY News
August 28, 2014 2137

Stanton Barrett's NASCAR Mustang Gets…

in Top Stories by Charles W. Riley II, SurfKY News

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


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

social 03social 04social 22social 21social 06