Public Reacts to Proposed PPS Rate Hike
By Levi Holsapple
PADUCAH, KY - Members of the outraged public jumped on the opportunity to express their opinion at a hearing held by Paducah Power Systems on Monday night.
The meeting began with electrical rate consulting firm Black & Veatch presenting the reasoning behind the five percent rate increase set to hit customers on April 1. A third, five percent increase is also slated for April 1, 2014. A 5 percent rate increase that was made on November 1, 2012 was the first step of this three-part increase.
Bob Brady, of Black & Veatch, told the public that the need for the hike was both immediate and clear for Paducah Power because the system has not been growing. He stated that Tennessee Valley Authority rates had been in place up until the November 1 rise.
It was learned that the board would like to have three operating reserves on hand. Presently there are none, but with the proposed rate increase the surplus would come out of the negative in 2014.
Following the presentation, numerous amounts of comments and concerns were directed towards the Board. A conclusion was made after hearing the responses. Paducah Power is bonded with Prairie State for 30 years. They have to buy power from the company regardless of the price.
A board member made it clear that they had not yet accepted any new rates and they intend on making a decision at a March 25 meeting.