The Kentucky Public Service Commission (PSC) has approved a request by Grayson Rural Electric Cooperative for a rate increase that will allow the utility to maintain its financial stability. The PSC authorized Grayson to raise rates to generate an additional 1.9 million dollars in annual revenue. The commission, however, termed the increase "problematic." It said the utility has been aware since 2010 that lower energy sales and rising costs were causing its financial position to deteriorate but waited until late last year to seek a rate adjustment.
Carol Fraley is the chief executive officer of the Grayson Rural Co-Op. She told the PSC in June the utility tries to keep its rates as low as possible because many of its customers have low-incomes…
“We have a high residential load, about 92 percent, and a great number of those folks are at or below the state and federal poverty levels. We try very hard to keep our rates as low as we possibly can and still provide a reliable service because we know that a lot of them simply have a really hard time making ends meet.” --Carol Fraley, CEO, Grayson Rural Electric Cooperative
The PSC said, in its order, that Grayson Rural should improve its financial condition before considering any further wage or salary increases for its employees. The rate increase will take the monthly service charge for residential and farm customers to 15-dollars. That’s four-dollars and 65-cents more than it is now. Grayson serves more than 15,000 customers in six counties in northeastern Kentucky.