East Kentucky Power Cooperative gets scaled-back rate increase

FRANKFORT, Ky. — Kentucky utility regulators have approved a modified settlement in East Kentucky Power Cooperative’s rate case, allowing the utility to increase revenue by about $63.7 million starting May 1, 2026.

What You Need To Know
The Kentucky Public Service Commission issued its final order in the case, approving a joint settlement with modifications.
EKPC had originally requested a $79,757,474 increase, or 7.49%.
Regulators instead approved a $63,670,273 increase, or 5.98%.
The commission rejected a proposed earnings mechanism over concerns about oversight and customer impact.

The Kentucky Public Service Commission announced Wednesday that it accepted a revised settlement, approving a $63,670,273 revenue increase—about 5.98%. This falls below the nearly $79.8 million, or 7.49%, increase the utility initially sought.

The Winchester-based cooperative supplies electricity to 16 rural electric cooperatives, serving more than 570,000 homes, farms, and businesses across 89 Kentucky counties. Those cooperatives have also requested rate adjustments to pass along higher wholesale costs, with decisions expected soon. All new rates are set to take effect May 1.

A key issue in the case involved how EKPC would manage earnings. The proposal would have allowed customers to receive refunds if the company exceeded a certain profit level, or pay more if earnings fell short. Regulators rejected this plan, citing concerns that EKPC’s financial trends suggested customers would more likely face additional charges rather than receive refunds.

The commission also warned that the mechanism could result in automatic bill increases without sufficient notice or regulatory oversight.

Instead, regulators ordered the removal of EKPC’s existing earnings mechanism and approved a modified Generation Maintenance Tracker. Officials said the remaining changes to the settlement were minor.

The case is listed as No. 2025-00208 on the Public Service Commission’s website, where the final order, hearing recordings, and related documents are available.

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