Environmental surcharge

Co-op 101 Member Matters

Have you ever wondered why the environmental surcharge appears on your monthly bill? It’s one of the questions members ask most often. Here are some answers to help understand this charge:

What is the environmental surcharge? The surcharge reflects the cost of equipment and other expenses that our power supplier, East Kentucky Power Cooperative, incurs to comply with regulations from the Environmental Protection Agency on power plant emissions.

Why does it change from month to month? It fluctuates as these environmental costs change. It can also vary because there is a settle up to account for monthly over- or under- collection of these costs.

How is it calculated? The surcharge is calculated as a percentage of your usage and is based on a formula approved by state regulators at the Public Service Commission. The state regulators consistently verify that only proper expenses are being billed to the members.

Does Shelby Energy get revenue from the surcharge? No. This charge is a direct pass-through from our power supplier, and every penny goes directly to them.

How can Shelby Energy help? We understand that rising costs can make it difficult to afford utilities, food and medicine. We can help members with programs like budget billing, payment arrangements, and we are always available to discuss ways to lower your overall energy usage.