Last week information was released the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) approved five Public Assistance (PA) grants totaling more than $24.7 million, to help five Kentucky non-profit utilities with response and recovery costs associated with this year’s record ice storm that crippled Fulton County.
It was noted that Hickman-Fulton Counties Rural Electric Corporation (RECC) in Hickman would receive $6,889,330.67.
As of Sept. 18, Greg Grissom, President and CEO of Hickman-Fulton Co. RECC, has yet to receive those funds.
Grissom did receive a letter Sept. 11 from the Kentucky Emergency Management Agency (KEMA) stating that within seven to 10 business days, the electric cooperative should receive $1,496,253.88 and $540,472.99, two sums approximately 75% of two applications submitted by Hickman-Fulton Co. RECC as a result of costs associated with Ice Storm ’09.
Five applications in all were submitted by Grissom’s office in Hickman. The five amounts total just under $11.7 million dollars.
The amounts were determined after the area was declared a disaster, at the local, state and federal levels. FEMA sent representatives to the area for approximately two months auditing the expenses documented by Grissom’s office.
Now, almost nine to 10 months after the incident, Hickman-Fulton Co. RECC is still waiting to be reimbursed for those expenses. Meanwhile, interest, in the amount of approximately $40,000 per month, is being paid, a result of emergency capital borrowed from outside lenders on a short-term.
Hickman-Fulton Co. RECC incurred massive expenses from Ice Storm ’09, as well as Hurricane Ike Sept. 14.
Two orders were put it from the result of those damages in the amounts of $81,048.47 and $210,022.67 for which they were reimbursed $45,589.76 and $118,131.75. The reimbursement amounts received are less then the 75%, actually around 50%, of what Grissom’s office was expecting.
Grissom remarked the “guys at the federal level have and are doing their jobs,” further expressing he believes the hold up is at the state level. He added, after Hurricane Ike, he realized Kentucky was dealing with a change- over at the gubernatorial level, so he was trying to be patient.
“We have lobbied at the state and federal levels by conference, email and even in person, trying to get our legislature to understand the seriousness of the situation,” commented Grissom. The longer it takes for RECC to get their funds, the more likely they are to be pushed into a corner where they have no choice but to raise the rates of their customers.
“We have met with the Governor, Lt. Governor, Congressman Whitfield, Senator Bunning, Rep. Steven Rudy and Senator McConnell” regarding the need for a quicker turnaround,” Grissom stated.
Hickman-Fulton Co. RECC services a small portion of customers in the state of Tennessee in Lake and Obion Counties. Applications for reimbursement from Tennessee Emergency Management Association (TEMA) in the amount of $272,411.31 were submitted and a payment was received from TEMA Sept. 2, in the amount of $153,231.37.
