In response to the COVID-19 pandemic and its associated economic hardships and uncertainties, the Kentucky Municipal Energy Agency (KYMEA) board in late April approved a COVID-19 Rate Relief Plan (RRP) and a Member Late Payment Protection Plan (LPPP).
KYMEA offers wholesale electric power supply and transmission services to the municipal utilities of Barbourville, Bardwell, Corbin, Falmouth, Frankfort, Madisonville, Paris, and Providence.
For its upcoming fiscal year beginning July 1, KYMEA approved a 4.19% reduction in member power supply and transmission bills.
In order to provide additional relief beyond the power bill reduction to address uncertainty tied to the pandemic, the KYMEA board approved the RRP and the LPPP.
The RRP shifts power costs and member usage risks, which are typically borne by the members, to KYMEA.
“The shifting of these risks provides certainty to the member communities that their monthly power bill rates will remain stable as the members’ customers hard hit by the pandemic move to reopen their businesses and begin to recover economically,” KYMEA noted.
The LPPP permits the agency to negotiate payment terms and suspend late payment fees for its members who may have difficulty paying their KYMEA power bills due to the pandemic.
The programs will stay in effect through June 2021.
“Having the ability to quickly address economic distress in our communities is precisely the reason we formed KYMEA,” said Chris Melton, Electric Superintendent of Madisonville Utilities Department and Chairman of the KYMEA All Requirements Project Committee. “As a not-for-profit agency, we are truly focused on providing much-needed relief for our customers.”
“The impact of the COVID-19 pandemic is unprecedented, and the health and well-being of our member communities is our top concern. KYMEA is pleased to offer economic relief to our members as their communities strive to recover and reestablish their businesses,” said Doug Buresh, President and CEO of KYMEA.