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Rates

HES purchases all of its electricity from the Tennessee Valley Authority (TVA). This is fortunate because TVA provides some of the most affordable electricity in the U.S. In early 2016, only six states had cheaper electricity rates than Kentucky1. In addition, HES has some of the most affordable electric rates in the western Kentucky region. All HES electric rates must be approved by TVA, who serves as the regulatory agency for HES.

Commercial Rates (Effective 8/1/2017)

1. If (a) the higher of (i) the customer’s currently effective monthly contract demand, if any, or (ii) its highest billing demand during the latest 12-month period is not more than 50 kW and (b) the customer’s monthly energy takings for any month during such period do not exceed 15,000 kWh:

GSA-1 (less than 50 kW)

Base Rate Total Monthly Fuel Cost* Effective Rate
Customer Charge < 500 kWh $26.00 $26.00
Customer Charge >501 kWh $32.00 $32.00
Kilowatt hour charge** $.08000 $.02074 $.10074

2. If (a) the higher of (i) the customer’s currently effective contract demand of (ii) its highest billing demand during the latest 12-month period is greater than 50 kW but not more than 1,000 kW or (b) the customer’s billing demand is less than 50 kW and its energy takings for any month during such period exceed 15,000 kWh:

GSA-2 (50-1000 kW)

Base Rate Total Monthly Fuel Cost* Effective Rate
Customer Charge $155.00 $155.00
Demand Charge**
     First 50 kW 2.00
     Excess over 50 kW $13.02 $13.02
Energy Charge***
     First 15,000 kWh $.07965 $.02074 $.10039
  Additional kWh $.04104 $.02047 $.06151

3. If the higher of (a) the customer’s currently effective contact demand or (b) its highest billing demand during the latest 12-month period is greater than 1,000 kW:

GSA-3 (1001-5000 kW)

Base Rate Total Monthly Fuel Cost* Effective Rate
Customer Charge $375.00 $375.00
Demand Charge**
     First 1,000 kW $12.13 $12.13
     Excess over 1,000 kW $11.78 $11.78
Energy Charge***
     All kWh $.04836 $.02047 $.06883

*  Subject to monthly adjustment based on current fuel prices
**  Billed per kW (kilowatt)
*** Billed per kWh (kilowatt-hour)

For more detailed information about HES commercial rates, click here.


1 U.S. Energy Information Administration website– April 2016 data