PES Board Approves Rate Increase

At its regularly scheduled meeting on Tuesday, April 27th, the Pulaski Electric System’s (PES) Board of Directors approved a 2% rate adjustment to take effect October 1, 2010.  This rate increase was adopted in anticipation of changes in TVA’s wholesale rate structure scheduled to take effect October 1.

For several months, PES has been analyzing the impact of the wholesale rate change, while also carefully considering PES’ overall financial position.  The accounting firm of Jackson Thornton was engaged to conduct a cost-of-service study to review PES’ current rates and the associated costs to serve its customers.  After a lengthy meeting, the PES Board agreed with Jackson Thornton’s recommendation and adopted a 2% electric rate increase.

This increase—along with changes in the wholesale power cost—is projected to increase a typical residential bill by about $7.00 when compared to today’s rate, and a typical small commercial customer may see their bill rise by about $3.50 a month.

The Board also approved implementing a power cost adjustment (PCA) beginning inOctober of 2010.  The PCA will allow rates to rise or fall every six months in relation to fluctuation in PES’ purchase power expense. 

Wes Kelley, President/CEO of PES said, “We take no joy in needing this increase in October, especially during these difficult economic times.  However, the Board understood that we needed to take appropriate action to ensure that PES has adequate funds available to cover our ongoing expenses and is prepared for the changes broughton by the anticipated wholesale rate change.”

The last time PES raised retail rates (aside from passing through TVA increases) was a half of one percent increase in October of 2006.  Before that, PES raised rates 2.25% increase in October of 2005.