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Environmental Surcharge

The environmental surcharge reflects the cost of equipment and other expenses our power supplier, East Kentucky Power Cooperative, incurs as it complies with EPA regulations on power plant emissions. 


Q. What equipment is needed to comply with EPA rules?
A. Our power supplier has installed expensive equipment like scrubbers. The surcharge covers operation and maintenance of this equipment, and other environmental costs.


Q. Is the charge from my co-op?
A. No. The charge is a pass-through from our wholesale 
energy supplier, East Kentucky Power Cooperative 
(EKPC). Every penny goes directly to EKPC.


Q. Who decides what my surcharge is?
A. It’s based on a formula approved by state regulators. 
EKPC bills Grayson RECC and then those costs are passed 
through to our members. State regulators make sure that 
only proper expenses are included.


Q. What goes into the formula?
A. Each month, EKPC calculates the environmental costs 
that state regulators have authorized EKPC to recover 
through the surcharge. These costs are divided by the 
12-month average revenues EKPC receives from its 
owner-member co-ops. This produces a surcharge billing 
factor that is stated as a percentage. EKPC determines the 
total charges to its owner-member co-ops and then applies 
this surcharge billing factor to the wholesale power bill of 
the co-op.


Q. Why does it go up and down so much from month to month?
A. The surcharge will increase as new pollution control 
equipment is added. And there are three other reasons the 
charge varies:
• Operation, maintenance and compliance costs 
 change monthly.
• 12-month average revenues for Grayson RECC 
 change depending on customer usage and weather.
• There is an additional adjustment that takes care of 
 over- or under-collections of the surcharge. 


Q. Will it ever be taken off the bill?
A. With the EPA tightening regulations, the surcharge will 
probably be in effect for a long time. 


Q. Can I lower the environmental surcharge?
A. The surcharge varies each month, and it is applied to 
the total bill. One way to contain the amount you pay toward 
the surcharge is to reduce your electric consumption. 


Q. Can the co-op help me at all?
A. Grayson RECC can help find ways to conserve power 
through free energy audits, and provide energy saving tips. 
Go to to learn more.


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