Published: June 21, 2008 10:02 pm      

Blue Grass Energy rates could rise

Madison County’s 10,320 Blue Grass Energy Cooperative customers could see a 9.01 percent increase on their monthly bills if a recent request is approved by the Kentucky Public Service Commission.

This would be the first increase in 25 years for Richmond and Nicholasville Blue Grass Energy customers if passed, said Magen Howard, communications advisor for Blue Grass Energy Cooperative.

Blue Grass Energy officially filed the request for a rate increase with the Kentucky Public Service Commission on March 31, which was about a six-month process, Howard said.

“It’s a mixed bag of reasons,” Howard said. “The cost of doing business has gone up in the past 25 years. Some of our customers have not seen an increase since 1983.”

About 1,000 people attended a June 17 annual meeting at the Madison County Fairgrounds where Dan Brewer, Blue Grass Energy’s chief executive officer, spoke on the difficult future of the electric utility industry, rising costs and impending legislation that will drive costs higher.

“It is time for us to collectively assume a greater responsibility in the discussion of this issue,” Brewer said. “We need you — our members — to help us start a conversation with the political decision makers and elected officials in Washington, D.C. We need your help in asking our elected officials the tough questions and requiring straight answers.”

The bill Brewer is referring to, known as the Lieberman-Warner Climate Security Act, would create a national cap-and-trade scheme for greenhouse gas emissions, in which polluters would mostly be allocated right-to-emit credits based on how much greenhouse gas they currently emit.

The cap would get tighter over time, until by 2050, emissions would be reduced to 63 percent below 2005 levels. Several environmental groups express their encouragement at the progress in legislation on the global warming issue while at the same time expressing disappointment that the bill doesn't reduce emissions enough, according to reports from the L.A. Times and marketwatch.com.

“This is just a money grab,” said Jim Rogers, CEO of Duke Energy (that provides electric and/or gas services to residents and commercial/industrial corporations in Kentucky, Indiana, North Carolina, Ohio and South Carolina) in a June 1 article in the Washington Post. “Only the Mafia could create an organization that would skim money off the top the way this legislation would skim money off the top.”

“I don’t think the bill will be passed in 2008,” Howard said. “I think it’s something that’s going to happen with the new (U.S.) president.”

Aside from keeping an eye on the bill’s progress in the Senate, Blue Grass Energy Cooperative representatives are still trying to provide the most reasonably priced services for their customers.

The corporation borrows funding from the Rural Utilities Service (RUS) and the Cooperative Finance Corporation (CFC).

“Without loans from RUS and CFC, our rates would be much higher,” Brewer said. “We have done our best to operate efficiently and avoid a rate increase for as long as possible. But as the costs of material and fuel continue to rise, and as environmental regulations become more and more stringent, we must have more revenue to continue the quality service you deserve.”

Jody Hughes, chairman of the Blue Grass Energy Board of Directors, reported that Blue Grass Energy is not immune to these challenges.

“What else do you use on a day-to-day basis that hasn’t increased in cost in 25 years,” Hughes said. “I dare say not.”

But even as costs continue to increase, Blue Grass Energy will stand by its members, which are the most important part of the cooperative, Hughes said.

“As we head into a rate increase, we at Blue Grass Energy will do everything we can to help you keep your costs as low as possible,” Hughes said. “Remember, we don’t need to make a profit for investors. Our main interest is serving our members.”

Blue Grass Energy offers several ways to help customers pay their bills including AutoPay, Levelized Budget Billing and Simple Savings. More information on these plans can be found by visiting www.bgenergy.com.

The Blue Grass Energy Co-op is a non-profit electric cooperative that serves more than 54,000 members/homeowners in 23 central and north Kentucky counties.

A Touchstone Energy Cooperative, Blue Grass Energy is headquartered in Nicholasvlle and has district office in Richmond, Cynthiana and Lawrenceburg.

Anyone who has questions about the possible rate increases or would like more information about Blue Grass Energy can visit www.bgenergy.com or call the Richmond office at 623-1582.