The primary service provided by CUC for customers is the provision of metered electricity for residential or commercial use. In this service provision, electricity use by the customer is measured by a meter and the meter register readings are taken on a monthly basis in order to quantity the consumption of electricity for billing purposes.
CUC has two types of billing component rates for electricity service customers, as defined in its Transmission & Distribution (T&D) License – base rates and pass-through charges.
Base Rates:
Base rates provide for the costs of CUC’s generation, transmission and distribution capital infrastructure and operations to deliver electricity to service locations. Base rate billing components include:
• Facilities Charge (all customers)
• Energy Charge - per kWh (all customers)
• Monthly Demand Charge - per kW (Large Commercial and DER customers)
• Additional Capacity Charge - per kW (Large Commercial and DER customers)
Base rates may vary between rate classes, in accordance with periodic Cost of Service Studies (CoSS). Base rates may change in accordance with the Rate Cap and Adjustment Mechanism (RCAM), which is reviewed annually as per License Condition 25. All changes to base rates, whether through a CoSS or RCAM, are reviewed and approved by the Regulator. A current schedule of Base Rates is available here.
Pass-Through Charges:
Pass-through charges are those billing components in which CUC charges to the customer the direct costs for a defined set of expenses related to the production of electricity, or for costs associated with licensing and regulatory expenses. All pass-through charges are issued to the customer with no mark-up from the expenses incurred by CUC. The accounting for pass-through charges is provided to the Regulator for review and approval. Pass-through charge billing components include:
• Fuel Cost - per kWh (all customers)
• Government Fuel Duty - per kWh (all customers)
• Renewable Energy - per kWh (all customers)
• License & Regulatory Fees - per kWh greater than 1,000 kWh (all customers)
The current and recent historical rates for the Fuel Cost, Government Fuel Duty, and Renewable Energy components is available here.
There may be other types of charge components on a billing statement for applicable customers, such as Security Light charges, Deposit Interest credit, Finance Charges, Disconnection Fees, CORE production credit, DER Excess Energy credit, etc. Development of new services and programs may lead to the establishment of additional billing charges for customers who apply for those new service or program offerings.
For further information on Billing Rates, please contact our Customer Service Department at service@cuc.ky or live chat.