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Holding the Line on Electricity Costs

No one likes to hear the words “rate increase.” But the fact is, everything Nolin buys and uses to bring clean, safe, affordable, and reliable electricity to your home, farm, or business has gone up in price over the last 10 years. And unfortunately, history tells us the costs of goods and services will continue to rise.


As we mentioned several months ago, Nolin has filed with the Kentucky Public Service Commission (PSC) for an 11.9 percent residential rate increase. If approved, Nolin’s base residential rate would increase from .08598 cents per kWh to .08747 cents per kWh. For an average household using 1,193 kWh per month, that would mean an additional $1.78. Also, we are seeking an increase on our monthly member cost of service charge from $9.04 to $20.00 on residential accounts.


The results of a recent study revealed Nolin’s existing member cost of service charge is less than what it actually costs to provide service. In fact, the existing member cost of service charge ($9.04) is only about one-third of what it costs to bring power to your meter. With the proposed increase (an additional $10.96) we are hoping to get closer to the actual cost to provide quality electric service to our members.


The service charge essentially ensures that all equipment operates properly; the poles, wires, and transformers are in place, and the staff is trained and ready so the lights turn on when you need them. Bottom line—this charge pays for having electricity ready for you to use at any time.


The PSC could approve all or part of the requested increase. It’s likely we won’t have a decision on Nolin’s filing until July or August of this year. It’s important to note that Nolin hasn’t raised our base rate since 2007 and prior to that, we had not raised our base rate in 25 years. In fact, rates were lowered in the early 1990s.


Nolin works very hard to keep our rates steady—we take pride in knowing that we’re doing all we can to bring you affordable electricity. We’ll keep you posted on Nolin’s rate increase filing as information from the PSC is passed on to us.

In the meantime, we remind you that Nolin offers a number of options to help you manage your energy bill. Some of those services include automatic payment options, budget billing, energy audits, and energy-efficiency programs. We encourage you to call the office for details on all of our energy management programs or browse other parts of the website for more info.

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