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RECEIVED April 11,2015 Re: Cases 2014-00372 and 2014-00371 AP'' PUBLIC SERVICE To whom it may concern at the Public Service'iS'ommission: I ask the Kentucky Public Service Commission (PSC) to reject the filings by LG&E and KU which propose a 67 percent increase in the residential customer fixed charge, from $10.75 per month to $18.00 per month. (Case numbers 2014-00372 and 2014-00371). This restructuring of rates and charges will stifle energy efficiency and clean renewable energy. Increasing the residential customer charge by 67 percent, as LG&E and KU propose to do, will impose inordinate increases on low- income households who must conserve, and on those who have incorporated energy efficiency or renewable energy measures for economic or environmental reasons. A higher customer charge will also short-circuit utility efficiency programs and stifle the growth of the many businesses who manufacture, install or service energy efficiency and renewable energy technologies. Rates can be structured to ensure both adequate returns to the utility and, at the same time, send price signals to the rate payer that encourage efficiency, demand-control, and adoption of renewable forms of energy. Increasing the customer fixed charge is the antithesis of any such enlightened rate structuring approaches, especially when coupled with a reduction in the per kWh charge, as LG&E proposes. While the original intent of the fixed customer charge was to pay only the costs associated with metering and sending bills, these utilities now seek to expand the customer charge far beyond its original purpose. Expanding the customer charge, as LG&E and KU seek to do, is both misguided and abusive of the regulatory structure. Further, increasing the proportion of fixed costs in a bill promotes a tendency of higher energy users to be even more wasteful in their usage. As we look to a future that includes the EPA's Clean Power Plan, this is exactly the path our utilities should NOT be taking.

To whom it may concern at the Public Service'iS'ommission cases/2014-00372/Public... · 2015-04-15 · To whom it may concern at the Public Service'iS'ommission: I ask the Kentucky

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Page 1: To whom it may concern at the Public Service'iS'ommission cases/2014-00372/Public... · 2015-04-15 · To whom it may concern at the Public Service'iS'ommission: I ask the Kentucky

RECEIVEDApril 11,2015

Re: Cases 2014-00372 and 2014-00371 AP'' 1®PUBLIC SERVICE

To whom it may concern at the Public Service'iS'ommission:I ask the Kentucky Public Service Commission (PSC) to reject the

filings by LG&E and KU which propose a 67 percent increase in theresidential customer fixed charge, from $10.75 per month to $18.00 permonth. (Case numbers 2014-00372 and 2014-00371). This restructuringof rates and charges will stifle energy efficiency and clean renewableenergy.

Increasing the residential customer charge by 67 percent, as LG&Eand KU propose to do, will impose inordinate increases on low-income households who must conserve, and on those who have

incorporated energy efficiency or renewable energy measures foreconomic or environmental reasons. A higher customer charge will alsoshort-circuit utility efficiency programs and stifle the growth of the manybusinesses who manufacture, install or service energy efficiency andrenewable energy technologies.

Rates can be structured to ensure both adequate returns to theutility and, at the same time, send price signals to the rate payer thatencourage efficiency, demand-control, and adoption of renewable formsof energy. Increasing the customer fixed charge is the antithesis of anysuch enlightened rate structuring approaches, especially when coupledwith a reduction in the per kWh charge, as LG&E proposes.

While the original intent of the fixed customer charge was to payonly the costs associated with metering and sending bills, these utilitiesnow seek to expand the customer charge far beyond its original purpose.Expanding the customer charge, as LG&E and KU seek to do, isboth misguided and abusive of the regulatory structure.

Further, increasing the proportion of fixed costs in a bill promotesa tendency of higher energy users to be even more wasteful in theirusage. As we look to a future that includes the EPA's Clean Power Plan,this is exactly the path our utilities should NOT be taking.

Page 2: To whom it may concern at the Public Service'iS'ommission cases/2014-00372/Public... · 2015-04-15 · To whom it may concern at the Public Service'iS'ommission: I ask the Kentucky

We,the undersigned, call on the PSC to deny this large increase in thefixed residential customer charge proposed by LG&E and KU, and firmlyrequest that a more just rate structure be preserved.

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