The environmental surcharge reflects the cost of equipment and other expenses our power supplier, East Kentucky Power Cooperative, incurs as it complies with EPA regulations on power plant emissions.
Q. What equipment is needed to comply with EPA rules?
A. Our power supplier has installed expensive equipment like scrubbers. The surcharge covers operation and maintenance of this equipment, and other environmental costs.
Q. Is the charge from my co-op?
A. No. The charge is a pass-through from our wholesale
energy supplier, East Kentucky Power Cooperative
(EKPC). Every penny goes directly to EKPC.
Q. Who decides what my surcharge is?
A. It’s based on a formula approved by state regulators.
EKPC bills Grayson RECC and then those costs are passed
through to our members. State regulators make sure that
only proper expenses are included.
Q. What goes into the formula?
A. Each month, EKPC calculates the environmental costs
that state regulators have authorized EKPC to recover
through the surcharge. These costs are divided by the
12-month average revenues EKPC receives from its
owner-member co-ops. This produces a surcharge billing
factor that is stated as a percentage. EKPC determines the
total charges to its owner-member co-ops and then applies
this surcharge billing factor to the wholesale power bill of
Q. Why does it go up and down so much from month to month?
A. The surcharge will increase as new pollution control
equipment is added. And there are three other reasons the
• Operation, maintenance and compliance costs
• 12-month average revenues for Grayson RECC
change depending on customer usage and weather.
• There is an additional adjustment that takes care of
over- or under-collections of the surcharge.
Q. Will it ever be taken off the bill?
A. With the EPA tightening regulations, the surcharge will
probably be in effect for a long time.
Q. Can I lower the environmental surcharge?
A. The surcharge varies each month, and it is applied to
the total bill. One way to contain the amount you pay toward
the surcharge is to reduce your electric consumption.
Q. Can the co-op help me at all?
A. Grayson RECC can help find ways to conserve power
through free energy audits, and provide energy saving tips.
Go to www.togetherwesaveKY.com to learn more.