Kentucky's 26
electric cooperatives, serving one-third of our state's population
with electricity, continue to support comprehensive study of all
relevant issues related to the possible restructuring of Kentucky's
electric utility industry. We called for the study to be done
during the 1998-99 interim legislative period as provided by House
Joint Resolution 95, and we support its continuation into and beyond
the year 2000. Additionally, we support inclusion of
"retail wheeling" (the right of the retail customer to
choose the generation source of their electric power) as a relevant
study issue. We strongly believe this study should continue to
examine the issue of whether or not restructuring is in the best
interest of our state. Only if this question is answered in
the affirmative should possible legislation be considered. We
believe the study should include an examination of other states'
experiences with restructuring.
Because electric cooperatives are non-profit, consumer-owned
organizations, we are especially committed to keeping rates for all
customer classes (residential, commercial, and industrial) as low as
possible. We are further committed to the concept of fairness
-- that the cost of electricity for all classes of customers
reflects a fair, just, and reasonable balance. And, because
our service is primarily residential in nature, we firmly believe
that particular attention should be paid to the effect restructuring
could have on residential users relative to cost, reliability and
availability - particularly those customers in rural areas.
Since Kentucky has some of the lowest electric rates in the nation,
the study should examine very closely whether restructuring could
have a negative impact on the rates in low-cost states. We
believe enactment of legislation mandating the restructuring of
electric utilities at either the federal or state level before 2002
is premature.
We will continue to participate in discussions related to
restructuring in order to be true to the best interests of all of
our customers. To accomplish this, we strongly support a
broad, coordinated public educational program to help ensure that
consumers are well informed. We believe that our co-op members and
the citizens of Kentucky need to fully understand what customer
choice really means, how it works, and whether they will actually
benefit from its implementation. Further, we support the
continued existence and enforcement of statutory provisions which
define service areas for electric service, eliminating costly
duplication of service facilities, helping maintain the natural
beauty of the landscape.
Adopted on unanimous vote by the Kentucky Association of Electric
Cooperatives Board of Directors on 6/24/97. Revised and adopted on
7/21/98 and on 1/18/00.
Kentucky Association of
Electric Cooperatives, Inc.
4515 Bishop Lane * Louisville, KY 40218
502-451-2430 * FAX: 502-459-3209 Terms of Use
