$13.3 million in bill credits to be returned to Western Kentucky utility customers
FRANKFORT, Ky. (WTVQ) – A settlement made between Attorney General Daniel Cameron, Big Rivers Electric Corporation (BREC) and Kentucky Industrial Utilities Customers (KIUC) will return $13.3 million in bill credits to BREC’s Kentucky customers.
BREC’s modifications to its Member Rate Stability Mechanism (MRSM) Tariff allow the company to return revenues to customers in the form of bill credits. Off-system sales or smelter loss mitigations efforts generate the revenues that are given back to the customer. The tariff makes sure Kentuckians get the additional revenues in the form of bill credits instead of having their utility rates frequently changed.
“Our Office of Rate Intervention worked closely with BREC and KIUC to reach a settlement that will return additional bill credits to customers and save Kentuckians $13.3 million,” said Attorney General Cameron. “I applaud BREC’s efforts to pursue a modified tariff that returns more money to Kentuckians and allows the company to continue rehabilitating its credit, which will provide long-term benefits and savings for utility customers.”
BREC filed an application in 2020 before the Public Service Commission (PSC) seeking to modify the MRSM Tariff to pay down a portion of the company’s debt and provide additional savings to consumers by increasing the bill credit. At this point, the Attorney General’s Office of Rate Intervention and KIUC got involved in the case.
The resulting settlement increased the bill credit for Kentucky consumers from $8 million to $13.3 million. The average bill credit for residential customers will amount to $47.58 annually or $3.97 per month. The settlement also helped BREC in regaining an investment grade credit rating, which will result in approximately $157,000 in annual interest savings. The PSC approved the settlement on June 9th.