Capital credit retirements set to distribute $4 million back to members

Kenergy is continuing its long-standing practice of retiring capital credits to its members. In June, Kenergy will return $4 million to its membership. The credit amount represents 85 percent of net margins allocated in 2014.

You may ask: What is a capital credit retirement? Let us explain.

Electric cooperatives aren’t like other utilities. First, they operate on a not-for-profit basis, which means Kenergy operates at cost. It collects only enough revenue to run and expand the business but without the need to generate profits for distant shareholders.

You, as a member, own a portion of Kenergy. When Kenergy has money left over, it’s returned to you and other members in a capital credit retirement.

This year, we are returning margins earned in 2014. Your share is figured by how much electricity you used during that year. If you were not a member during that year, you will not receive a credit on your bill.

We are proud to say this is Kenergy’s sixth consecutive capital credit retirement. Since 2012, the cooperative has returned more than $17 million to its members and former members.

In essence, cooperatives are businesses that pay you back. That’s rare. And it’s a great reason to be a member of an electric cooperative.

Right now, Kenergy’s staff is still calculating amounts to be paid to each eligible member. But, after you receive your June bill statement, feel free to call the co-op at 1.800.844.4832 if you have questions.

Unclaimed Capital Credits

Former members of Kenergy are able to claim capital credits due to them. Kenergy has published a list of former members on our webpage: 

Kenergy hopes relatives, neighbors or friends will help locate these former members and have them contact us.


No envelopes in survey

Some of our members have received a survey in the mail asking about appliances and household characteristics.

Unfortunately, the vendor responsible for printing and mailing the survey omitted the business reply envelope in the surveys sent before February 13th.

If you received a survey without a return envelope, you may disregard the survey, and you are eligible for one of two $250 prizes at the vendor’s expense.

You will be receiving a letter of apology from the vendor.

We apologize for any inconvenience and thank you for your support.


2017 Washington Youth Tour winners

Each year, Kenergy selects six high school juniors for the Washington Youth Tour.

These delegates tour Washington, D.C., monuments, meet with members of Congress, attend the changing of the guard at the Tomb of the Unknown and visit the Smithsonian, among other activities.

A team of Kenergy-area judges select students based primarily on a 1,000-word essay on the subject of their choice.

This year’s winners are:

more: 2017 Washington Youth Tour winners

Billing Gap Recovery Q&A

What do you mean by billing gap?

At Kenergy, member-owners’ monthly bills are not paid to date. The co-op’s billing system lags behind approximately two months. This means Kenergy’s entire membership has used about a month’s worth of electricity it has not been billed for yet.

 How did this gap occur?

In the past, when a member signed up for service, Kenergy took a meter reading to begin the new member’s billing. The first statement the new member received requested a meter reading only, which means the new member did not remit a payment – just a meter reading. The following month (or after about two months of service) the new member was billed according to the reading provided after the first month of service.  Therefore, the Kenergy billing system lags behind about two months.

more: Billing Gap Recovery Q&A

Kenergy explains higher January bills

Several factors pushed up average January 2017 bills about 60 percent or higher, as compared to the prior year.

Those factors were members’ higher usage, loss of the reserve fund credit, billing gap recovery and a small rate increase.

  • Weather extremes affect energy bills more than any other single factor. Higher usage due to colder temperatures accounted for about 30 percent of the year-over-year increase. According to regional National Weather Service data, the same billing period a year ago was much warmer. Therefore, members used 30 percent more electricity during the same billing period this year.

more: Kenergy explains higher January bills

Kenergy board elects new chairman

At its regularly scheduled meeting on Wednesday, Dec. 14, the Kenergy Board of Directors elected a new chairman.

Larry Elder will replace Steve Henry, who recently resigned from his seat on the board.

Henry told fellow directors last month he had accepted a new position with Domtar that requires him to move to another state.

PSC calculates interest rates on deposits

The Kentucky Public Service Commission (PSC), in accordance with revisions made to KRS 278.460 in 2012, has calculated the annual interest rate to be paid on member deposits for the upcoming year.

The statute requires the PSC to calculate the interest rate to be paid on an annual basis by averaging the one-year constant maturity treasury rate from September, October and November of each year.

Using data from September, October and November, the PSC has calculated an interest rate of 0.66 percent to be paid on member deposits in 2017.

Frequently asked questions and the revised statute may be found on the PSC’s website.

No more meter readings

HENDERSON, Ky. — September has been a red-letter month for Kenergy.

The co-op successfully completed the installation of a state-of-the-art meter system. The project required months of research, new skills training and changing more than 56,000 meters in the 14 counties Kenergy serves.

The end of this project means our member-owners will no longer report monthly meter readings. Thanks to the new metering system, Kenergy can read meters remotely.

Kenergy is pleased to offer this convenience to members who struggle with mobility issues. In the past, they relied on family and friends to perform this task.

Also, many of our farmers and businesses have multiple meters. They will no longer have to invest time gathering all those readings.

Remote meter readings save the co-op time, labor and money because, in the past, employees entered thousands of meter readings manually every month.

Here are some quotes from members who are pleased with this enhanced service:

“I am excited about Kenergy moving to the new meters that will eliminate my having to report usage numbers.

As I don’t always visit my cabin on the Green River on reporting days or am kept away by floodwaters, I am relieved accurate (meter readings) will be reported automatically and electricity status can be monitored remotely. 

… I also use the Kenergy ‘My Account’ app for iPhone and use it to monitor daily use, review past data, confirm payments and sometimes read the Member Matters newsletter on it.

 Thanks, Kenergy, for keeping the meters and reporting state-of-the-art.” – S McCarty, Henderson County


“I know where the meter is, but I’m in a (wheelchair). I couldn’t get around there.” E Boswell, Daviess County


Residential bills to climb

This story ran in the August 2016 member newsletter titled Member Matters, which is included in monthly bill statements.  An earlier version also ran in the January member newsletter.

Reserve funds that have fully offset the 2014 rate increase for residential members are expected to phase out in coming months, beginning in October.

Members have received this credit on their bills since Feb. 1, 2014, when the Kentucky Public Service Commission (PSC) adjusted the revenue and rates of Big Rivers Electric Corp. — Kenergy’s wholesale energy supplier — to reflect the departure from Big Rivers’ system of the Century Aluminum smelter in Sebree.

more: Residential bills to climb