Utility company rate-hike example misleading

August 13, 2004

Dear Editor:

It's interesting how companies state things when it is bad news for us, the consumers. I refer to the rate increase by LG&E Energy - serving us through Kentucky Utilities - of $6 a month for customers using 1,000 kilowatt hours.

First question: How many customers use that precise amount?

Second question: What is the actual percentage increase in the rates?

Can't answer the first, but the figures cited amount to six-tenths (0.6) of a cent per kilowatt hour. The charge per kilowatt hour has been five cents. Thus, the new charge will be 5.6 cents for an increase of 12 percent.

If you thought your monthly bill was only going to increase $6, that is what LG&E probably hoped you would believe. My bill based on last month's billing, will increase about $9. And that is in a household of two adults.


Reminds me of the pricing in some retail stores. Items priced at two for $2 or three for $3 or two for $5. Where is the saving buying the larger quantity? All part of the same game. Put out figures that are meaningless.

A.R. Gross


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