PAINTSVILLE, Ky. — Higher electricity prices could be in the future for more than 12,000 customers in Eastern Kentucky, as Big Sandy RECC is asking for a rate increase.

The utility filed an application with the Kentucky Public Service Commission this week, asking for a more than 13 percent increase that would generate an additional $3.4 million.

Big Sandy’s last rate increase was in 2018. The company says an increase is necessary now because its finances are being pinched by rising costs, a declining population, and the collapse of the coal industry. The utility serves customers in Breathitt, Floyd, Johnson, Knott, Lawrence, Magoffin and Martin counties, but only has one customer that qualifies as an industrial account.

Big Sandy’s application much of the burden on residential and agricultural customers, who would see their bills climb by more than 15 percent, generating nearly $3 million of the increase. That amounts to an increase of more than $21 a month for the average customer. That increase would come from raising the customer charge from about $22 to $29 and by raising the energy charge 1.4 cents per kilowatt hour.

The PSC will now review the case and likely schedule a public hearing before deciding whether to accept, reject or alter the application.

Big Sandy’s application and additional items from the rate case can be found at https://psc.ky.gov/Case/ViewCaseFilings/2024-00287.