Henderson, Kentucky, electric customers could see rate increase soon

Michael Doyle, Henderson Gleaner
·3 min read

HENDERSON, Ky. — The Henderson City Board of Commissioners passed a first reading of an ordinance this week that would result in higher bills for Henderson Municipal Power & Light customers.

The change is not a rate increase, but a suspension of credits that customers currently receive, HMP&L General Manager Brad Bickett said. The utility takes in revenue for the use of some of its high-voltage transmission lines and passes that onto the customer in the form of a monthly credit of 0.4 cents per kilowatt hour.

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However, that revenue is being disputed by Big Rivers Electric Corporation, which has been involved in numerous legal cases with the city and HMP&L in recent years.

HMP&L has continued to collect the transmission revenue on a provisional basis, but the money is frozen due to the legal action. As a result, the utility has been pulling from its reserves to continue the customer credit for about 18 months.

"We have to stop doing that," Bickett said. "We just don't have enough reserves to continue setting that aside."

Bickett said he expects a decision on the Big Rivers litigation from the Federal Energy Regulatory Commission soon, but in the meantime suspending the credits would allow the utility to build its working reserve funds back up.

Based on an average residential usage of 1,000 kilowatt hours per month, which Bickett said is typical, the change would amount to about a $4 increase on a customer's monthly bill.

The board approved the first reading of an ordinance that would suspend the credit, with the caveat that the billing change go into effect on Oct. 1 instead of the planned Sep. 1, to prevent utility customers from being hit with the change until after summer ends. A second reading will have to be approved before the change is final.

The commission also:

  • Approved a $10 million general obligation bond for improvements and upgrades to the city's water and sewer system. The Water & Sewer Commission recommended the bond on June 21, as part of the city's agreement to provide water and wastewater services to the new Pratt Industries paper mill.
    Planned projects include an upgraded intake system at the South Water Treatment Plant. The new system will have a capacity of eight million gallons per day. There are also plans for a new operations center at Henderson Corporate Park. The bond's final maturity date is June 1, 2042.

  • Authorized the purchase of a new regenerative air street sweeper from Stringfellow, Inc. of Louisville. The vehicle uses high velocity air blasts and suction hoses to clean street debris and litter. Purchase price is $302,483.60. The city's existing sweeper was a 2007 build with 103,000-plus miles and was judged to have "outlived its usefulness."

  • Approved a new smartphone app designed by Zach Harmon, a summer intern working for the Information Technology Department. Harmon's app includes access to pay bills online, calendars, city government news items and resources and notifications for road closures and other disruptions of service. The app has been submitted to Apple and Google Play for approval.

  • Approved a 2% salary increase for city manager William "Buzzy" Newman.

The next Board of Commissioners meeting is scheduled for July 26 at 3 p.m.

This article originally appeared on Henderson Gleaner: Why is my power bill going up in Henderson Kentucky?