News

11/30/2009

Clark Energy requests first rate increase since 1993

Clark Energy Cooperative has announced that on November 18 it submitted its official filing to the Kentucky Public Service Commission (PSC) requesting its first rate increase in almost 17 years.

The not-for-profit, member-owned cooperative based in Winchester has asked the Kentucky PSC for permission to increase rates by an average of 9.5 percent. The average typical residential consumer can expect to pay approximately $11.57 more each month.

The approval process takes approximately six months as the Kentucky PSC and Attorney General reviews the request, financial documentation, and cost of service study before making a formal ruling. If approved, members would not see the rates adjusted on their electric bills until early to mid-summer.

Previous rate increases on members’ electric bills were a result of pass-thru charges by the cooperative’s power supplier, East Kentucky Power Cooperative (EKPC) and were revenue-neutral for Clark Energy. These increases were due to rising costs of coal and natural gas to run power plants, purchased power, and costs to meet federal environmental regulations.

Clark Energy has experienced rising operating costs and decreased revenues because of milder weather patterns and loss or reduction of industrial loads as a result of the faltering economy. The cooperative must maintain certain margins to meet the loan requirements of Rural Utilities Services and Cooperative Finance Corporation and maintain compliance with Kentucky PSC regulations.

“As we work with our members struggling to pay their bills, we see firsthand some of the pain the unsteady economy has caused.” said Clark Energy President and CEO Paul Embs. “Unfortunately, the state of the economy has had a negative effect on all aspects of our daily lives and it makes it harder to have to tell our members about an impending rate increase.”

Embs noted that in the 17 years since its last rate adjustment, the cooperative has added more than 8,000 new members as well as more than 538 miles of new power lines that must be operated and maintained. “I have focused on making Clark Energy operate more efficiently since becoming CEO in 2005. We have reduced operating costs where possible and done our best to absorb the additional expenses without having to increase our rates.” Embs stated. “However, these costs have become too much for us to continue to absorb and still meet our financial obligations and continue to provide our members with reliable service.”

Clark Energy offers its members several options for managing their usage and monthly electric bills while improving the efficiency of their homes and businesses through:

·    Budget billing, which removes much of the month-to-month cost volatility;

·    Free home energy audits, in which a professional energy advisor will visit homes and point out ways to increase efficiency; and

·    Online information at www.clarkenergy.com about quick projects that can improve energy efficiency.

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