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Kenergy to seek small rate increase that would mostly affect residential customers


HENDERSON, Kentucky — A rural electric cooperative in western Kentucky says it plans to ask state regulators to approve a rate increase that would affect mostly residential customers.

Kenergy Corp. President Jeff Hohn said the proposed 2.46 percent rate increase is the first the utility has sought since 2011, when the Public Service Commission approved a 2.87 percent increase. It would add about $4 to a typical residential bill.

The proposal comes on the heels of Kenergy passing along three rate increases since 2011 from its supplier, Big Rivers Electric Corp. A recent audit shows those increases totaled about 33 percent.

Hohn told media that the biggest reason for the proposed rate increase is depreciation expense and if the request is denied "it would put us in a financial bind."

The Henderson-based Kenergy serves about 56,000 customers in 14 western Kentucky counties.

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