The Frankfort Plant Board held public hearings Tuesday night to discuss proposed rate changes for electric and water services and to establish rates for new business telephone features and service.
Since 2009, Kentucky Utilities (KU) has engaged an annual formulated rate mechanism. This allows KU to change the wholesale electric rate charged to FPB based on KU’s actual charges incurred. Kentucky Utilities has notified FPB of an estimated 7.08 percent wholesale rate increase, including projected ash pond cleanup costs effective July 1, 2017. This would be a 5.9 percent residential increase estimated to cost residential electric customers an average increase of $6.71 per month. This increase is a 100 percent pass-thru to KU. None of that increase would stay at FPB.
A recent Cost of Service study indicates water revenues fall short of revenue requirements. In an effort to minimize larger future rate increases, FPB staff recommended smaller annual incremental rate increases over the next four years. The recommended 4.8 percent overall rate increase averages to approximately $1.90 per residential city customer who uses 4,000 gallons of water per month. The average commercial customer using approximately 30,000 gallons of water will see an increase of about $6.25 per month. FPB currently provides water to its customers for about a dollar a day. The new water rates are proposed to be effective August 1, 2017.
FPB staff has received requests from customers and potential customers for additional features with the Business Telephone Service. Added features will enhance the service and give business customers more options. Hosted PBX service will provide an internet-based phone service solution that will help small business get big business features and help big businesses control phone service and costs more efficiently. These features would be optional and in addition to the current Business Telephone offerings.
Public comments will be accepted no later than Monday, June 19, 2017. The public may call 352-4372 or submit comments on FPB’s website at www.fpb.cc. The board is scheduled to vote on these proposals at its regular monthly meeting on June 20, 2017 at 5 p.m. at the FPB administration building at 151 Flynn Ave. in Frankfort.