Henderson, Ky. – Residents of Henderson may see a noticeable rise in their electric bills as Henderson Municipal Power & Light (HMP&L) moves forward with a proposal to increase rates by roughly 21 percent over the next two years. The utility outlined a four‑step schedule that would begin in January 2027, with the final increase slated for June 2028.
Proposed rate schedule
Brad Bickett, general manager of HMP&L, explained that each step would affect all customer classifications. “The increases across all customer classifications are going to be around 6% on the first step, 8% on the second, 3% on the third, and 3% on the fourth,” Bickett said. When combined, these steps would total an approximate 21 percent rise in the average residential bill.
Why rates are climbing
The utility attributes the proposed hikes to higher costs for purchased power, as well as rising operating, maintenance, and capital expenses. “While these contracts are going up, it’s still less than other options we’ve evaluated that are within our ability to proceed with,” Bickett noted. He added that demand for electricity in the area continues to grow, and market prices for generation have become more expensive.
Local generation not cost‑effective
HMP&L officials said they examined the possibility of generating electricity locally but concluded that doing so would not be cheaper than continuing to purchase power under existing contracts. The utility believes its current procurement strategy, even with the anticipated cost increases, remains the most fiscally responsible option for Henderson taxpayers.
Assistance for low‑income customers
To help households facing financial challenges, HMP&L highlighted a new weatherization program managed by the Audubon Area Community Services. “It’s a partnership that we have just entered into to help those with low income be able to reduce their energy usage,” Bickett said. The program aims to improve home efficiency, thereby lowering overall energy consumption for qualifying families.
Public hearing scheduled
The Henderson City Commission will hold a public hearing on the proposed rate increases, giving residents an opportunity to learn more about the plan and voice their concerns before commissioners consider any action. The hearing date and location will be announced on the city’s official website and through local media outlets.
What this means for residents
If approved, customers can expect their first rate bump of about 6 percent to appear on the January 2027 bill. Subsequent increases will follow the outlined schedule, culminating in the full 21 percent adjustment by mid‑2028. Homeowners are encouraged to review their energy usage, explore efficiency measures, and take advantage of the new weatherization assistance program.
HMP&L’s plan is designed to keep the utility financially stable through 2029, ensuring reliable service while managing the rising costs of power procurement. The upcoming public hearing will be the key forum for community input on the proposal.
Original reporting: 14 News WFIE Evansville (news) — read the source article.
