Kentucky Frontier Gas is asking the Kentucky Public Service Commission to reconsider a rate decision.
They argue that the approved rate structure could create a major cash flow issue for the utility. Initially Kentucky Frontier Gas requested a monthly customer charge of $25 per month—but the commission only approved a charge of $17.63.
They say that that will only cover a third of their summer operating expenses when gas usage drops sharply.
Kentucky Frontier Gas states that they could be forced to borrow at least 300K just to make it through the summer months.
The utility serves around 47-hundred customers across Eastern Kentucky including Pike, Letcher, Floyd, Johnson and Perry counties.
They are now asking the commission to raise the rate to at least $22.50 or possibly approve a revised rate structure which would improve year round cashflow.