Kelly Rechtin
2052 Sherwood Ave 
Louisville, KY 40205
Phone:
E-Mail:kellyrechtin@gmail.com


TO: Commissioners

Kentucky Public Service Commission

211 Sower Blvd.

Frankfort, KY 40601

Fax 502-564-3460

 

RE: Case No. 2012-00222

 
Dear Commissioners:

 
I am a residential customer of LG&E. I write to oppose LG&E's rate increases on electric and gas service. 

I specifically oppose the increase to monthly service charges. LG&E wants to raise the monthly electric service charge by 53% (from $8.50 to $13.00) and the kWh rate by only 3.7% (from 7.242 cents to 7.513 cents). It seeks to raise the monthly gas service charge by 24% (from $12.50 to $15.50) and to lower the CCF price by 6.4% (from $.62023 to $.58025).


This proposed rate system violates fundamental rules of free market economics. Any rate increase should be allocated to the unit of energy (volumetric pricing), not to the monthly service charge. LG&E already enjoys a monopoly and guaranteed profits.  Allocating this (or any) rate increase to the monthly service charge:

 
Unfairly and unjustly diminishes the returns of prior investors in efficiency;

     
Unreasonably discourages future private investments in efficiency;

     
Unreasonably rewards wasteful users of energy;

     
Unjustly and unfairly impacts those who use energy sparingly (i.e. the elderly and the efficiency-minded), and;

     
Unreasonably impairs deployment of renewables and distributed generation.


In short, LG&E's proposed structure is terrible public policy. Using alternative energy and promoting energy conservation is the pathway we should be taking to preserve our environment for generations to come. LG&E would better serve our community (and also themselves) by rewarding those who work to preserve, protect and promote our environment. Shame on LG&E for trying to act otherwise.

Sincerely,

Kelly Rechtin