Advocating for fair utility rates

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Seeking board members to enact change and fight for fair utility rates

MISSION:

 

KCUC is the voice of Kentucky's commercial utility customers, advocating against excessive utility rate increases.

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ABOUT KCUC:

KCUC is Kentucky’s first not-for-profit organization devoted to protecting the commercial sector from excessive utility rate increases.

 

Commercial companies have joined together to solve problems related to the rising cost of utilities in the state of Kentucky. We believe: the cost of energy is an important element in our cost of doing business and therefore has a direct impact on our competitiveness in the marketplace.

Who makes up the commercial sector in Kentucky? Essentially all non-residential customers excluding manufacturing facilities:

  • Hospitals

  • K-12 and Higher Education

  • Nursing Homes

  • Commercial Office Space

  • Retail and Hospitality

  • Distribution

KCUC PURPOSE

 

To represent the commercial viewpoint on energy and utility issues before all appropriate governmental bodies and other pertinent organizations which affect those issues in the Commonwealth of Kentucky.

 

  • A resource and focal point for identifying problems and finding solutions.

  • Utility rates to all customer classes based on cost of service principles.

  • Utility rates should reflect efficient operations.

  • Promote further economic growth in Kentucky.

  • A cost effective investment that enables companies to participate in issues and cases which a single company could not afford on its own.

  • A collective representation for commercial utility customers before the Kentucky Public Service Commission, the Kentucky legislature, the Federal Regulatory Commission, the courts and the public.

WHY NOW?

Compared to the manufacturing and residential sectors, the commercial sector has seen higher increases in electric utility rates. These increases are outpacing inflation by an approximate ratio of 3:1. When this is compounded over a period of seven-eight years, and your revenue is only going up by about 1 – 1.5 %, you’re likely to find yourself in a position where your spending on utilities surpasses spending in other areas.


At a minimum, rising electric rates may be causing frustration, especially if the pace is eroding any savings your company has achieved through conservation measures. If your company’s revenue growth has been sluggish, you may not have the budget to cover your rising utility costs. 

With pressure mounting, you may be forced to make painful cuts in operations, marketing or other areas to continue to fund your utility bills. This expertise and our unified voice allow KCUC to challenge proposed rate increases and file interventions with the state on behalf of the commercial sector.

 

Since 2008, electric utility companies in Kentucky have dealt with flat or declining sales. One way utility companies protect revenue during periods of decline is to push for rate increases.

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STRENGTH IN NUMBERS

KCUC has been created under the expert legal guidance and coaching of James Gardner with Sturgill, Turner, Barker & Moloney, PLLC. With more than two decades of utility law experience, Jim spent eight years on the Kentucky Public Service Commission, serving as Chairman, and Vice-Chairman. During his time with the PSC, Jim chaired hearings and public meetings involving such matters as rate increases, fuel adjustment cases, environmental plans and certificates of public convenience and necessity.

 

While KCUC grows our membership base and strengthens our position, others are also addressing the challenge.  The National Governors Association (NGA) is using its horsepower to help. The NGA has identified Kentucky as one of four states that it will support in crafting a long-term energy plan.

 

KCUC is also working with the Kentucky Energy and Environment Cabinet and the Public Service Commission to collaborate with stakeholders and discuss ways to secure a positive future. The Energy Cabinet is leading the effort, and it is already bringing about increased awareness of the problems.

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