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Resident opposes KU rate increase request
by Romell Johnson/Daily News Guest Columnist
21 months ago | 5366 views | 1 1 comments | 21 21 recommendations | email to a friend | print
On Tuesday, April 27, 2010, the Public Service Commission (the "PSC") held a public hearing at the Auditorium at Southeast Kentucky Community and Technical College in Harlan, Kentucky to receive public comment concerning Kentucky Utilities requested residential house rate increase. (Notice of the meeting was printed in The Daily News on Saturday, 4/17/10.) According to those who registered and requested to speak, there were only three persons from Middlesboro, Bell County, Kentucky - Rep. Rick Nelson, Sue Wyatt and myself.

I was very proud of Representative Nelson. The PSC recognized him and allowed him to speak first in opposition to the rate increase. Mr. Charles R. Borders, a member of the PSC and a former legislator, spoke very highly of Rep. Nelson's representation of his constituents and about his hospitality to those who visit our area. (See Rep. Nelson's comments in The Daily News on 4/28/10.)

As an indicator of how "giant" the KU proposed rate increase is, opposing intervenors in this case include the Kentucky Attorney General, the Community Action Council for Lexington-Fayette, Bourbon, Harrison and Nicholas Counties, Inc., the Kentucky Cable Telecommunications Association, Kentucky Industrial Utility Customers, Inc., the Kentucky School Boards Association, The Kroger Company and Wal-Mart Stores East, LP.

The Kentucky Utilities Co. is asking for a 13.5% residential rate increase. If you oppose this rate, please contact the PSC:

KENTUCKY UTILITIES CASE NO.: 2009-00548 (MUST INCLUDE THIS AT ALL TIMES)

Public Service Commission P.O. Box 615 Frankfort, Kentucky 40602-0615

Phone No.: 1-502-564-3940

E-mail: andrew.melnykovych@ky.gov

Delta Natural Gas Company, Inc. is also asking for a 15.9% residential rate increase (small & large nonresidential - 9.2% and 7.3%, respectively). If you oppose this rate, please contact the PSC as above listed but use Case No 2010-00116

I was very grateful that I had an opportunity to speak before the PSC. Because of the length of my presentation, I am unable to submit it in its entirety in this letter. However, please note the following paragraphs from my comments, in part:

A rate increase of such magnitude in our troubled economy is unduly burdensome to the residents and businesses of Middlesboro, Kentucky.

As the intervenor, the Community Action Council, provides social services, including energy assistance and related services, to numerous low income residents in KU's service territory, we have our Middlesboro counterpart, the Cooperative Christian Ministry ("CCM"). In 2009, CCM provided $17,148 for energy assistance to 361 households and in 2010, CCM has already provided $6,260.54 for energy assistance to 76 households. To understand the magnitude of CCM's outreach, you have to understand that CCM's mm. amount is $50/household and its max. is $100/household (i.e., w/a 6-mo. interval). Climbing a step further, the Bell-Whitley Community Services Agency, Inc. during 20082009 FY provided $1,812,801 in energy assistance to 9,890 families and during 2009-2010 FY provided $1,924,663 in energy assistance to 9,928 families. Even though approx. $2 million a year has been spent, both CCM and Bell-Whitley could have served more families in Middlesboro and Bell County had there been more funding. The need for energy assistance is truly great! How are people to survive faced with an increase?

While I have your ear and before I take my seat, I remind you that the PSC's charge is to protect responsibly the public's interest. So, please consider that if you grant the KU rate increase of 13.5%, and grant Delta Natural Gas's proposed rate increase of 15.9%, along with the existing 29.5% you have already granted Water Service Corporation, you will have placed upon the citizens of Middlesboro, Kentucky a 58.9% utilities rate increase in less than a year. I do not know but I feel certain these utility companies are showing a profit, so please do not continue to place the burdens of these utilities on the backs of their customers Thank you.

It is now up to each of us. We can sit here and take these rate increases or decide to do something about them!

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malibu50
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July 22, 2010
I think this is ridiculus the majority of people that live in ky are struggling as it is trying to make ends meet everything is high enough and most of the people in this area doesnt get enough money to pay all there bills as it is they are just surviving.The elderley are already saying i dont know what we are gonna do if it gets any higher we are not going to make it they are already doing with other things just to survive from month to month so in my opinion this should not take place and these companys should put therselves in these peoples shoes and see how it feels just to survive from one month to the next.
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