Big Rivers Electric Corporation’s plans to sell wholesale power to Nebraska customers in hopes of cutting costs to current customers.
Big Rivers has lost about two-thirds of its revenue after aluminum smelters in Hawesvilleand Sebree stopped purchasing power. Kentucky’s Public Service Commission has twice approved rate increases since.
Big Rivers Spokesman Marty Littrel says revenue from Nebraska contracts will help pay a portion of Big River’s fixed operating costs.
"If you were a college student and you rented a ten-bedroom apartment and you only had two roommates, obviously if we could add additional roommates it helps to offset our former costs," said Littrel. "Obviously our rent goes down because we have more people helping to offset that bill.
“So that’s the benefit to west Kentucky is the fact that we have been able to land a deal that we anticipate – we’re not sure, it’s still early – but we think it’s projected to provide our members, which again are the consumers, a $65 million benefit over the life of the agreement.”
Big Rivers has around 114,000 Kentucky customers. The company will begin selling wholesale power to around 11,000 Nebraska customers in 2018.
