PAINTSVILLE, Ky. — Big Sandy RECC’s request for a $3.4 million rate increase is still pending before the Kentucky Public Service Commission, but the utility’s customers will see the higher rates on their next bills, anyway.

Big Sandy is seeking its first rate increase since 2018, saying the higher rates are necessary due to higher costs, a declining population and the collapse of the coal industry. The utility’s proposal would see residential customers paying 15 percent more on their bills, or about $21 a month for the average bill.

The PSC held a hearing on the rate request in February but has still not issued its decision.

When Big Sandy filed its rate case back in October, the PSC suspended the effective rate for the new rates until March 31. Once that date passed, Big Sandy sent notice to the PSC that it intends to implement the new rates for services provided beginning May 1.

On Tuesday, the PSC gave its approval to that plan.

Big Sandy will need to keep records that will allow it to issue refunds, in the event the PSC rejects the rate request or approves lower rates than the utility is seeking.

Big Sandy RECC serves about 12,000 customers in Breathitt, Floyd, Johnson, Knott, Lawrence, Magoffin and Martin counties.