Environmental Surcharge Mechanism Review for East Kentucky Power Cooperative and Member Cooperatives

The Kentucky Public Service Commission has released a regulatory document on the Environmental Surcharge Mechanism for East Kentucky Power Cooperative and its 16 member cooperatives. The document reviews the surcharge mechanism for six-month expense periods ending May 31, 2022, November 30, 2022, November 30, 2023, May 31, 2024, and November 30, 2024, as well as a two-year expense period ending May 31, 2023. The commission's staff has requested information from the cooperatives, and South Kentucky Rural Electric Cooperative has provided a response.

Key Takeaways:

• The Environmental Surcharge Mechanism is a key aspect of East Kentucky Power Cooperative's financial reporting, with a focus on pass-through revenue requirements and over- or under-recovery amounts for member cooperatives.
• The commission's staff has requested information from the cooperatives on their pass-through revenue requirements, including calculations and documentation.
• South Kentucky Rural Electric Cooperative has provided a response to the commission's staff, including a summary schedule showing the member cooperative's pass-through revenue requirements and over- or under-recovery amounts.
• The cooperative has also provided actual residential customers' monthly usage for the 12 months ending November 30, 2024, and the calculation of the dollar impact on the average residential customer's monthly bill.
• The review covers six-month expense periods, a two-year expense period, and the pass-through mechanism of the member cooperatives.
• Carrie Bessinger, Chief Financial Officer for South Kentucky Rural Electric Cooperative, has certified the accuracy of the response to the commission's staff.

Statistics:

• The review covers six-month expense periods ending May 31, 2022, November 30, 2022, November 30, 2023, May 31, 2024, and November 30, 2024, as well as a two-year expense period ending May 31, 2023.
• South Kentucky Rural Electric Cooperative has provided a summary schedule showing the member cooperative's pass-through revenue requirements for each of the six-month expense periods.
• The cooperative has also provided actual residential customers' monthly usage for the 12 months ending November 30, 2024.

Sources:

• Commonwealth of Kentucky Before the Public Service Commission In the Matter of: An Electronic Examination by the Public Service Commission of the Environment, Surcharge Mechanism of East Kentucky Power Cooperative, Inc. for the sixth-month expense periods ending May 31, 2022, November 30, 2022, November 30, 2023, May 31, 2024, and November 30, 2024, the two-year expense period ending May 31, 2023, and the pass-through mechanism of its sixteen member distribution cooperatives Case No. 2025-00013.
• South Kentucky Rural Electric Cooperative's Response to the Commission's Staff First Data Request Dated March 5, 2025.
• Certificate of Carrie Bessinger, Chief Financial Officer for South Kentucky Rural Electric Cooperative Inc.