Starting in 2009, Kentucky Utilities (KU), with Federal Energy Regulatory Commission (FERC) approval, instituted an annual formulated rate mechanism. This allows KU to change the wholesale electric rate charged to the Frankfort Plant Board (FPB) based on KU’s actual charges incurred. FPB is notified of the new rate every May with and effective date of July, 1 of that same year. This year KU has notified the municipal customers of an estimated 7.08% wholesale rate increase including projected ash pond cleanup costs, effective for energy used from July 1, 2017.
Due to these annual rate changes from KU and in keeping with good utility practice, FPB conducts periodic cost and cost allocation reviews by means of a cost-of-service (COS) study. These reviews insure that FPB’s retail rates generate adequate revenue based on consideration of wholesale power cost, operating expenses as well as adequate working capital and reserves. Based on the most recent electric cost of service study, which was approved by the Board in May 2013, this 7.08% KU increase will translate differently for FPB’s various customer classes but will generally result in a 5.6% to 5.9% retail rate increase.
A public hearing will be conducted at a special called meeting of the Frankfort Plant Board on 6th June 2017 at 5:00 p.m. at the Frankfort Plant Board Administration Building, 151 Flynn Ave, Frankfort, Kentucky 40601.
The recent Cost of Service study indicates water revenues fall short of revenue requirements. In an effort to minimize larger future rate increases, staff recommends smaller annual incremental rate increases over the next four years. As a matter of course, the Board approved a special called meeting on June 6, 2017 at 5:00 p.m. at the Frankfort Plant Board Administration Building located at 151 Flynn Ave, Frankfort, Kentucky, 40601 for the purpose of conducting a public hearing to solicit oral or written comments.
The Frankfort Electric and Water Plant Board will hold a Special Board Meeting to conduct a Public Hearing on Tuesday, June 6, 2017 at 5:00 p.m. at the Frankfort Plant Board Administration Building, 151 Flynn Ave, Frankfort, Kentucky, 40601 to solicit oral or written comments regarding: (1) Setting rates for additional Business Telephone Features and (2) Setting rates for additional Business Telephone Services.