Attorney General Daniel Cameron, Big Rivers Electric Corporation, and Kentucky Industrial Utilities Customers announced Thursday afternoon that a settlement has been reached returning $13.3 million in bill credits to customers in western Kentucky, including in Caldwell County.
According to Cameron, the settlement results from modifications to Big River’s Member Rate Stability Mechanism Tariff, which allows the company to return revenues to customers in the form of bill credits.
Cameron said his Office of Rate Intervention worked closely with Big Rivers Electric and Kentucky Industrial Utilities to reach a settlement that will return additional bill credits to customers and save Kentuckians $13.3 million. He also applauded Big River Electric’s efforts to pursue a modified tariff that returns more money to Kentuckians and allows the company to continue rehabilitating its credit, which will provide long-term benefits and savings for utility customers.
Last year, Cameron said Big Rivers Electric filed an application before the Public Service Commission seeking to modify the Member Rate Stability Mechanism Tariff to pay down a portion of the company’s debt and provide additional savings to consumers by increasing the bill credit. The Attorney General’s Office of Rate Intervention and Kentucky Industrial Utilities Customers intervened in the case on behalf of Kentucky ratepayers.
Cameron said the resulting settlement increased the bill credit for Kentucky consumers from $8 million to $13.3 million. The average bill credit for residential customers will reportedly amount to $47.58 annually or $3.97 per month. He stated the settlement also assisted Big Rivers Electric in regaining an investment-grade credit rating, which will result in approximately $157,000 in annual interest savings. The Public Service Commission approved the settlement on June 9th.
Big Rivers Electric Corporation is headquartered in Henderson and provides wholesale electric power and services to three Kentucky Cooperative members, including Kenergy. In total, the cooperatives serve more than 121,000 members in 22 western Kentucky counties including Caldwell, Crittenden, Hopkins, Livingston, Lyon, and Webster.
