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Kentucky Utilities Breakdown for 1,000 kWh Residential Use and the Future Increases to comply with the EPA

The City County Observer contacted Howard Bush, the Manager of Tariffs & Special Contracts for Kentucky Utilities office in Lexington today and asked two questions. The first question is what is the final cost today for 1,000 kWh and the 2nd question was how much will implementing the required investments to achieve EPA attainment raise that bill and when?

The answer for today is that 1,000 kWh costs $86.70 for KU customers as compared to $157.60 for the same thing purchased from Vectren. KU also responded that they expect a 20% increase to a total rate of $.0.105 by the year 2016 as compared to Vectren’s current rate of $0.1576.

KU’s Response

Here’s the information that you requested. I just asked if you could quote him on that, so we’ll see, he hasn’t answered yet. Or is all this public knowledge? Does this help at all?

Basic Service Charge: $ 8.50
Energy Charge (1,000 kWh times $0.06719): $67.19
Fuel Adjustment Clause (November): $ 1.63
Demand-side Management (November): $ 1.88
Environmental Surcharge November): $ 2.47
Franchise Fee (Lexington): $ 2.44
School Tax: $ 2.44
Home Energy Assistance: $ .15

Total for 1,000 kWh: $86.70 (net rate to customers of $0.0867 per kWh)

Above is the billing of a residential customer using 1,000 kWh.

The articles referred to revolve around the impacts of environmental regulations which are estimated to raised rates around 20%. That increase will come over several years as KU spends money to meet governmental standards.

We would expect a 20% increase to go to around $0.105/kWh.

3 Responses to Kentucky Utilities Breakdown for 1,000 kWh Residential Use and the Future Increases to comply with the EPA

  1. biscuit Reply

    November 15, 2011 at 10:02 pm

    good homework, CCO. Councilman Friend was right, Carly Chapstick was wrong !

  2. mark right Reply

    November 17, 2011 at 8:51 pm

    What ever happened to the law that said we could buy electricity from anyone on the grid?? Wondering!!!!

    • editor Reply

      November 18, 2011 at 7:36 am

      Unfortunately that is not the way things are done in Indiana. Our territories are parsed into state granted monopolies.

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