It’s not rumor. It’s a fact. Concerns by Somerset City Council and Pulaski Fiscal Court about a stiff electrical rate increase to pay more than half the cost of repairs to Wolf Creek and Center Hill dams will become reality unless political pressure intercedes.

If the United State Army Corps of Engineers continues to obtain money under the same formula to repair Wolf Creek and Center Hill dams, electric customers may see a 45 percent rate increase for hydroelectric power produced at Corps dams.

Center Hill Dam near Nashville has serious seepage problems and the Corps has obtained federal funds for design and construction of a long term fix by 2014. The much chronicled seepage problems at Wolf Creek Dam are on schedule for permanent repair by December 2012.

Leon Jourolmon, assistant adminis-trator for finance and marketing, Southeastern Power Administration (SEPA), agrees if the Corps continues to use “construction general” funds to repair the two dams, customers using hydroelectric power generated by the Corps may have to pay more than half the cost. It would mean a electrical rate increase of 45 percent based on a “quick study” done by SEPA in February 2009.

Estimated cost of repairing Wolf Creek Dam is $584 million. Fixing Center Hill Dam is another $269 million. The total is $853 million, of which more than half –– $436 million –– would be recovered by rate increases imposed by SEPA for hydroelectric power produced by Corps dams, Jourolmon said.

Pulaski countians might not be affected as dramatically as areas that get all their electrical power from SEPA. The rate increases would apply only to hydroelectric power sold by SEPA, Jourolmon said.

For example, East Kentucky Power Cooperative, wholesale supplier of power to South Kentucky RECC and 15 other electrical coop-eratives, produces 90 percent –– 3,000 megawatts –– of its own power. Nick Comer, spokesman for the Winchester-based coop-erative, said it buys only 100 megawatts of power from SEPA and any rate hike imposed on this power would be spread over its 16 cooperatives and 500,000 members.

Cliff Feltham, media relations manager for Kentucky Utilities, said he is not aware of the price hike controversy. Jouro-lmon said Kentucky Utilities does not buy power from SEPA.

Jourolmon, during an interview with the Commonwealth Journal, mentioned a less-costly alternative. He said if money allocated for the dam repairs was under a “dam safety” classif-ication, electric users would be required to repay only $65 million, again based on what he called a “quick study” done last February.

Jourolmon agreed that “construction general” could be equated with rehabilitation and “dam safety” with an emergency situation. When asked why Wolf Creek Dam’s classification in “high risk” of failure would not be an emergency situation, Jourolmon suggested “ ... you should be talking with the Corps.”

We did. David Hendrix, project manager for Wolf Creek Dam rehabilitation, said the Corps works on dams in two categories –– Dam Safety Assurance and Dam Safety Major Rehabilitation.

Repairs for seismic and hydrologic conditions are done under Dam Safety Assurance and all else, including seepage, is done under Dam Safety Major Rehabilitation. Seepage is and has been a continuing problem at Wolf Creek Dam and the money for repairs is obtained under Dam Safety Major Rehabilitation, Hendrix explained.

He said under the original formula for construction of Wolf Creek Dam, 55 percent of the cost was for hydroelectric power and 45 percent for flood control. This apparently is the formula by which SEPA may recover funds from consumers of hydroelectric power.

According to Hendrix, 55 percent of the funds under Dam Safety Major Rehabilitation may be recovered from hydroelectric power consumers while under Dam Safety Assurance customers would pay back only 15 percent. Neither Hendrix nor SEPA officials made it clear how SEPA, marketing agent for hydroelectric power produced by Corps’ dams, incurs additional costs when the money to fix the dam is coming straight from Congress. Hendrix theorized it is a provision in the original allocation formula.

Jourolmon said higher rates for hydroelectric power would not be implemented until late 2011 or 2012 when Wolf Creek Dam repairs are complete.

Relief from higher electrical rates may come from congressional intervention. Congress-man Hal Rogers, R-Somerset, in a prepared statement to the Commonwealth Journal Tuesday, said “ ... I believe Kentuckians have suffered enough which is why I am working with Congressman (Ed) Whitfield and other members of the delegation to ensure Kentucky utilities don’t get stuck with the bill.” Rogers is a senior member of the Appropriations Com-mittee, source of funding for dam repairs.

Asked if he is aware of Rogers’ efforts to head off a price hike for electricity, Jourolmon remarked: “ ... We are not allowed to lobby. We are aware of what he is doing ... he is doing what customers what him to do.”

Southeastern Power Administration, head-quartered in Elberton, Georgia, is responsible for marketing electric power and energy generated at reservoirs operated by the United States Army Corps of Engineers. This power is marketed to more than 491 preference customers in the states of Georgia, Florida, Alabama, Miss-issippi, southern Illinois, Virginia, Tennessee, Kentucky, North Carolina, and South Carolina. “The Corps builds and operates the dams and we sell the power,” said Jourolmon.

Hendrix emphasized that regardless of the source of money to repair the dam, safety is still the Corps’ top priority.