FRANKFORT, Ky. — East Kentucky Power Cooperative has reached a settlement with the Kentucky Attorney General’s Office to reduce the amount of the rate increase by about 20 percent from what the company had been seeking.

East Kentucky Power Cooperative, which supplies power to electric co-ops across the state, including Big Sandy RECC and Licking Valley RECC, had been seeking raise rates by 6.94 percent, which would have generated a little less than an additional $80 million.

Under the terms of the settlement, the company has agreed to new rates that would raise nearly $64 million in additional revenue. The impact of those rates would be to raise residential customer bills by 4.95 percent. The Attorney General’s Office says that would translate to an increase of less than $5 a month for the average residential customer.
In addition, East Kentucky Power agreed not to seek another rate increase for at least three years.

The settlement is not yet final and must still be approved by the Kentucky Public Service Commission.