East Kentucky Power Cooperative on Thursday asked the state Public Service Commission for permission to raise the rate it charges to members by 5.3 percent.
The increase would raise the average customer's bill by $5 to $6 a month by the first of the year, the utility said.
Tony Campbell, East Kentucky Power's president and CEO, said the higher rate is necessary " to continue building our cooperative's equity and strengthen its overall financial condition."
East Kentucky Power is a not-for-profit, member-owned cooperative. It generates and transmits electricity to 16 cooperatives that serve more than 500,000 homes, farms and businesses in 87 Kentucky counties. The cooperatives include Blue Grass Energy and Clark Energy.
The PSC last month issued a scathing management audit of East Kentucky Power Cooperative, saying customers must band together to change it from the inside for it to stay viable.