Rate Case | Farmers RECC

NOTICE OF PROPOSED ADJUSTMENT TO

RETAIL ELECTRIC RATES

PLEASE TAKE NOTICE that, in accordance with the requirements of the Kentucky Public Service Commission (“Commission”), as set forth in 807 KAR 5:001, Section 17(2)(b), of the Commission’s Rules and Regulations, notice is hereby given to the members of Farmers Rural Electric Cooperative Corporation (“Farmers”) of a proposed general rate adjustment. Farmers intends to file an application in Case No. 2025-00107 styled, The Electronic Application of Farmers Rural Electric Cooperative Corporation for General Adjustment of Rates and Other General Relief, to the Commission, on or after May 5, 2025.

The rate adjustment, with a requested effective date of June 4, 2025, or after, will result in an increase in retail power costs to its member consumers, and in an increase in revenue of $2,365,822 or 3.94% for Farmers.

The amount and percent of increase by rate class are listed below:

Rate Class		Increase
Rate Class		Dollars	Percent
1	Schedule R - Residential Service	$ 2,356,923	5.92%
3	Schedule R - TOD Residential Service	$ 46	3.34%
20	Rate Schedule NM - Net Metering	$ 7,001	3.63%
7	Schedule RM - Residential Off-Peak Marketing - ETS	$ 1,852	10.91%
4	Schedule C - Commercial & Industrial Service <50kW	$ 0	0.00%
5	Schedule C - Commercial & Industrial Service >50kW	$ 0	0.00%
9	Schedule C - Commercial & Industrial Service - Primary	$ 0	0.00%
10	Schedule E - Large Industrial Rate	$ 0	0.00%
14	Schedule LPC-2 - Large Power	$ 0	0.00%
15	Schedule D - Large Commercial/Industrial Optional TOD Rate	$ 0	0.00%
24	Schedule LPE-4 - Large Power TOD Interruptible 1500 Firm 200	$ 0	0.00%
36	Schedule LPE-4 - Large Power TOD	$ 0	0.00%
50	Schedule C - TOD Commercial Service	$ 0	0.00%
SL	Schedule SL - Street Lighting Service	$ 0	0.00%
OL	Schedule OL - Outdoor Lighting Service	$ 0	0.00%
	Total	$ 2,365,822	3.94%

The effects of the proposed rates on the average monthly bill by rate class are listed below:

Rate Class		Average Usage (kWh)	Monthly Increase
Rate Class		Average Usage (kWh)	Dollars	Percent
1	Schedule R - Residential Service	1,053	$ 7.99	5.92%
3	Schedule R - TOD Residential Service	927	$ 3.82	3.34%
20	Rate Schedule NM - Net Metering	1,705	$ 7.28	3.63%
7	Schedule RM - Residential Off-Peak Marketing - ETS	268	$ 1.88	10.91%
4	Schedule C - Commercial & Industrial Service <50kW	1,622	$ 0	0.00%
5	Schedule C - Commercial & Industrial Service >50kW	44,554	$ 0	0.00%
9	Schedule C - Commercial & Industrial Service - Primary	506,352	$ 0	0.00%
10	Schedule E - Large Industrial Rate	5,428	$ 0	0.00%
14	Schedule LPC-2 - Large Power	695,050	$ 0	0.00%
15	Schedule D - Large Commercial/Industrial Optional TOD Rate	15,946	$ 0	0.00%
24	Schedule LPE-4 - Large Power TOD Interruptible 1500 Firm 200	2,776,829	$ 0	0.00%
36	Schedule LPE-4 - Large Power TOD	NA	$ 0	0.00%
50	Schedule C - TOD Commercial Service	7,095	$ 0	0.00%
SL	Schedule SL - Street Lighting Service	NA	NA	0.00%
OL	Schedule OL - Outdoor Lighting Service	NA	NA	0.00%

The present and proposed monthly rates for each rate schedule are listed below:

Rate			Present	Proposed
1	Schedule R - Residential Service
		Customer Charge	$ 18.12	$ 27.79
		Energy Charge per kWh	$ 0.100666	$ 0.099057
3	Schedule R - TOD Residential Service
		Customer Charge	$ 23.97	$ 27.79
		Energy Charge - On Peak per kWh	$ 0.122041	$ 0.122041
		Energy Charge - Off Peak per kWh	$ 0.073193	$ 0.073193
20	Rate Schedule NM - Net Metering
		Customer Charge	$ 18.12	$ 27.79
		Energy Charge per kWh	$ 0.100666	$ 0.099057
7	Schedule RM - Residential Off-Peak Marketing - ETS
		Energy Charge - Off Peak per kWh	$ 0.065808	$ 0.073193
8	Schedule CM - Small Commercial Off-Peak Marketing - ETS
		Energy Charge - Off Peak per kWh	$ 0.059837	$ 0.059837*
4	Schedule C - Commercial & Industrial Service <50kW
		Customer Charge	$ 23.39	$ 33.06
		Energy Charge per kWh	$ 0.099582	$ 0.093619
5	Schedule C - Commercial & Industrial Service >50kW
		Customer Charge	$ 115.18	$ 115.18
		Energy Charge per kWh	$ 0.078540	$ 0.078540
		Demand Charge per kW	$ 8.66	$ 8.66
10	Schedule E - Large Industrial Rate
		Customer Charge	$ 1,253.27	$ 1,253.27
		Demand Charge per kW	$ 8.66	$ 8.66
		Energy Charge per kWh	$ 0.063882	$ 0.063882
14	Schedule LPC-2 - Large Power
		Customer Charge	$ 1,412.92	$ 1,412.92
		Demand Charge per kW	$ 8.66	$ 8.66
		Energy Charge per kWh	$ 0.068527	$ 0.068527
15	Schedule D - Large Commercial/Industrial Optional TOD Rate
		Customer Charge	$ 115.18	$ 115.18
		Demand Charge per kW	$ 8.66	$ 8.66
		Energy Charge per kWh	$ 0.078547	$ 0.078547
36	Schedule LPE-4 - Large Power TOD
		Customer Charge	$ 3,526.81	$ 3,526.81
		Demand Charge per kW	$ 7.26	$ 7.26
		Energy Charge - On Peak per kWh	$ 0.075365	$ 0.075365
		Energy Charge - Off Peak per kWh	$ 0.066122	$ 0.066122
50	Schedule C - TOD Commercial Service
		Customer Charge Single Phase	$ 23.39	$ 33.06
		Customer Charge Three Phase	$ 115.18	$ 115.18
		Energy Charge - On Peak per kWh	$ 0.136644	$ 0.136644
		Energy Charge - Off Peak per kWh	$ 0.073193	$ 0.073193
SL	Schedule SL - Street Lighting Service
		Energy Charge per kWh	$ 0.068542	$ 0.068542
OL	Schedule OL - Outdoor Lighting Service
		Mercury Vapor 175 Watt	$ 11.18	$ 11.18
		Mercury Vapor 175 Watt (shared)	$ 4.28	$ 4.28
		Mercury Vapor 250 Watt	$ 12.93	$ 12.93
		Mercury Vapor 400 Watt	$ 19.73	$ 19.73
		Mercury Vapor 1000 Watt	$ 35.83	$ 35.83
		Sodium Vapor 100 Watt	$ 11.28	$ 11.28
		Sodium Vapor 150 Watt	$ 13.30	$ 13.30
		Sodium Vapor 250 Watt	$ 18.26	$ 18.26
		Sodium Vapor 400 Watt	$ 23.82	$ 23.82
		Sodium Vapor 1000 Watt	$ 51.85	$ 51.85
		LED Light 70 Watt	$ 11.03	$ 11.03
		LED Light 105 Watt	$ 16.95	$ 16.95
		LED Light 145 Watt	$ 18.79	$ 18.79
		LED Flood Light 199 Watt	$ 24.16	$ 24.16
LPC-1	Schedule LPC-1 - Large Power
		Customer Charge	$ 1,051.81	$ 1,114.92
		Demand Charge per kW	$ 8.04	$ 8.66
		Energy Charge per kWh	$ 0.067403	$ 0.071447
LPC-3	Schedule LPC-3 - Large Power
		Customer Charge	$ 3,040.53	$ 3,222.96
		Demand Charge per kW	$ 8.04	$ 8.66
		Energy Charge per kWh	$ 0.063789	$ 0.067616
LPC-4	Schedule LPC-4 - Large Power
		Customer Charge	$ 3,328.33	$ 3,528.03
		Demand Charge per kW	$ 8.04	$ 8.66
		Energy Charge per kWh	$ 0.061207	$ 0.064879
LPC-5	Schedule LPC-5 - Large Power
		Customer Charge	$ 4,659.66	$ 4,939.24
		Demand Charge per kW	$ 8.04	$ 8.66
		Energy Charge per kWh	$ 0.058625	$ 0.062143
LPE-1	Schedule LPE-1 - Large Power TOD
		Customer Charge	$ 1,051.81	$ 1,114.92
		Demand Charge per kW	$ 6.85	$ 7.26
		Energy Charge On Peak per kWh	$ 0.077972	$ 0.082650
		Energy Charge Off Peak per kWh	$ 0.069279	$ 0.073436
LPE-2	Schedule LPE-2 - Large Power TOD
		Customer Charge	$ 1,333.40	$ 1,413.40
		Demand Charge per kW	$ 6.85	$ 7.26
		Energy Charge On Peak per kWh	$ 0.075912	$ 0.080467
		Energy Charge Off Peak per kWh	$ 0.067209	$ 0.071242
LPE-3	Schedule LPE-3 - Large Power TOD
		Customer Charge	$ 3,040.53	$ 3,222.96
		Demand Charge per kW	$ 6.85	$ 7.26
		Energy Charge On Peak per kWh	$ 0.074367	$ 0.078829
		Energy Charge Off Peak per kWh	$ 0.065656	$ 0.069595
LPE-5	Schedule LPE-5 - Large Power TOD
		Customer Charge	$ 4,659.66	$ 4,939.24
		Demand Charge per kW	$ 6.85	$ 7.26
		Energy Charge On Peak per kWh	$ 0.069215	$ 0.073368
		Energy Charge Off Peak per kWh	$ 0.060480	$ 0.064109

* Farmers is proposing to withdraw its Schedule CM – Small Commercial Off-Peak Marketing in this proceeding. There are currently no customers on this rate schedule.

No other changes to charges in any rate schedules are proposed.

Farmers is also proposing to change the time zone for the off-peak hours from Eastern to Central time in its Schedule RM – Residential Off-Peak Marketing – ETS and is also proposing to close that tariff to new members. In addition, Farmers is proposing to withdraw Schedule CM – Small Commercial Off-Peak Marketing – ETS tariff.

Any person may examine the rate application and related documents which Farmers has filed with the Commission at the utility’s principal office located at 504 South Broadway, P.O. Box 1298, Glasgow, KY 42142 and at its satellite office located at 401 Main Street, Munfordville, KY 42765.

Any person may also examine the rate application and related documents which Farmers has filed with the Commission on the Commission’s website at https://psc.ky.gov, or Monday through Friday, 8:00 a.m. to 4:30 p.m., at its office located at 211 Sower Boulevard, Frankfort, KY 40602.

Comments regarding the application may be submitted to the Commission by mail to: Kentucky Public Service Commission, P.O. Box 615, Frankfort, Kentucky 40602, through its website https://psc.ky.gov or by electronic mail to: psc.info@ky.gov.

The rates contained in this notice are the rates proposed by Farmers Rural Electric Cooperative Corporation. However, the Commission may order rates to be charged that differ from the proposed rates contained in this notice.

Any person may submit a timely written request for intervention to the Kentucky Public Service Commission, P.O. Box 615, Frankfort, Kentucky 40602, establishing the grounds for the request, including the status and interest of the party. If the Commission does not receive a written request for intervention within thirty (30) days of initial publication or mailing of this notice, the Commission may take final action on the application.

For complete information about the filing, visit the Kentucky Public Service Commission website here.

Frequently Asked Questions - Rate Case 2025

Farmers RECC is requesting a modest 3.94% increase to residential members. For an average member, this would mean an additional $7.99 per month. All rates are reviewed and approved by the Kentucky Public Service Commission.
Planned increase to average residential member - $7.99 per month
Increased customer charge - up from $18.12 to $27.79 per month
Decreased per kWh charge - down from $0.10666 to $0.099057.
The fixed increase on the customer charge provides your cooperative with a predictable flow of revenue and keeps from negatively impacting you if the weather is unusually severe and you use more kWhs of energy.

The adjustment will appear on members’ bills in early 2026, subject to approval by the Kentucky PSC.

It doesn’t. We are a not-for-profit, member-owned cooperative. We exist to serve our members with reliable, affordable power and any margins (profits) we receive are invested into the electric system or allocated to members in the form of capital credits.

There are many ways to reduce your energy use and, therefore, your electric bill. Learn about ways to save at Together We Save Kentucky | Kentucky's Touchstone Energy Cooperatives. You can also contact us to learn more about our energy efficiency rebates or to schedule an energy evaluation of your home by contact us at 270-651-2191 or email efficiency@farmersrecc.net.

Farmers RECC has continued to improve our right-of-way program to keep lines clear of trees and other vegetation, limiting the impact of storms by reducing outages and the expenses associated with those. Farmers RECC also operates an aggressive line inspection program to identify potential problems and replacing thousands of damaged or aged poles, further reducing outage impacts. In addition, Farmers RECC has implemented new technology that has improved operational efficiency across the organization. We have also made small changes to conserve funds, like shifting our Annual Meeting format.

Each service on the Farmers RECC system requires materials; wires, poles, transformers and meters. The cost for those materials has risen exponentially in the past several years, with some materials doubling in price. Unfortunately, that means that what residential members pay for their service is out of alignment with what a residential service costs the cooperative to build. Therefore, our proposed rate would help correct that misalignment through an increase in the customer charge for residential members.

We also propose a decrease in the kWh charge. This would help our members during extreme temperature swings by stabilizing their bill.

With the proposed increase, the average residential member bill would increase by $7.99.