Shelbyville-based Shelby Energy Cooperative Inc. can raise its rates to increase annual revenue by $1.9 million, or 5.2 percent, the Kentucky Public Service Commission ruled Tuesday.
A typical residential customer's monthly bill would increase by just over $3, or about 2 percent, the PSC said in a news release. Residential customers who had opted for a demand-control rate that allows Shelby Energy to turn off their water heater or air conditioner at peak energy demand times will see increases of $15.81, or about 12 percent a month.
The increase is $342,850 less than the amount Shelby Energy had requested. It is the first general increase for Shelby Energy since 1983.
The PSC also approved Shelby Energy's request to restructure rates and consolidate all residential customers into one rate class.
Residential customers will now all pay a monthly customer charge of $9.75, which is intended to cover the utility company's fixed costs. Before, customers with demand-control had paid $12.52 and other residential customers had paid $7.92.
Shelby Energy has about 15,300 residential and commercial customers in Shelby County and nine nearby counties.