Apr. 21--An Elliottville man who is not happy about East Kentucky Power Cooperative's (EKPC) recent rate increase is taking a stand and he is not alone.

Doug Doerrfeld is a member of Kentuckians for the Commonwealth. His organization, along with the Cumberland Chapter of the Sierra Club and the Kentucky Environmental Foundation, commissioned an EKPC financial report. The report indicates if EKPC moves forward with energy plans, its financial situation will worsen and in effect cost its customers even more. Based on the report, the organizations are encouraging EKPC to make some changes.

"We're proposing they cancel Smith One plans and move aggressively in the direction of community based energy efficiency and weatherization programs."

The proposed Smith One coal-fired power plant will be located in Clark County.

Effective April 1, EKPC raised its rates nearly $5.60. Rowan County's customers who are affected by this increase include those of Fleming-Mason Energy, Grayson Rural Electric Corp. and Clark Energy.

Doerrfeld is a Grayson Rural Electric customer.

"I'm not happy about (the increase) at all and neither are my neighbors," Doerrfeld said.

This marks the third year in a row that EKPC has raised its rates. The PSC accepted a settlement that permits EKPC to raise the company's wholesale rates in order to increase its annual revenue by nearly 7 percent, or $59.5 million.

EKPC Spokesman Nick Comer said customers will eventually save money because of the $5.60 increase. This is because the company has been purchasing power from outside sources, he said. EKPC has a shortage of generating capacity and has had unscheduled shutdowns at its generating facilities. The increase will help EKPC pay for its new H.L. Spurlock Station power plant in Maysville, according to Comer.

Doerrfeld said TR Rose Associates' financial report proves EKPC's priority to build the new coal-fired power plant is misaligned with the direction of capital markets and energy policy.

The report, titled "The Right Decision for Changing Times," states that coal is no longer a low-risk or least-cost fuel source for utilities or their ratepayers. The estimated cost of Smith One is $766 million, which is 78 percent more than what it cost EKPC to build a similar plant in 2005.

"Over the years our association has carefully tracked energy trends and practices and the financial situation of many investor owned and cooperative utilities like EKPC," said report author Tom Sanzillo.