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One of the best parts of managing an electric cooperative is the ability, indeed the responsibility, to focus on providing the absolutely best possible service at the least possible cost. Costs of everything we use to operate, maintain and repair our system have seen substantial increases. Steel, copper, any item with a petroleum component, fuel, utilities (yes, we pay an electric bill, too) have all jumped significantly. With that being said, to maintain the quality, reliability and integrity of the services we provide, it is necessary for us to adjust our pricing structure.
Effective January 1, 2012, we will increase the monthly facility charge by $2.00. Members will realize this on their February bill for January usage. What is the facility charge? Let me explain this way. Your power bill has three components; the facility charge, the energy charge and a purchased power adjustment. The intent of the facility charge is to cover the costs we incur to build and maintain the system that carries the electricity to your home or place of business. Even if we never move a single kW over the wires, we still face these expenses in keeping the facilities in place to carry that energy.
In addition, members with geothermal or electric heat metering rates will receive a minor rate adjustment. Members on these specific rates were mailed individual letters explaining the increase. You may be asking why we are raising this rate yet we continually encourage energy efficiency. These rates were put into place several years ago when our wholesale power cost was significantly lower. Over time our costs went up and the rate wasn't adjusted accordingly. Therefore we are making small modification so that we are close to covering our wholesale power cost while still providing an incentive to those who choose to use the most efficient, environmentally friendly technology available. Please note that the facility charge on the secondary meter will not increase, only the energy charge.
You may be asking how increases can be avoided. The simple answer is that they can’t. Costs will rise, technology and infrastructure upgrades will be necessary and usage will continue to increase. However, they can remain stable longer if you take steps to conserve energy. Every kWh the cooperative’s members avoid using is one the cooperative doesn’t have to buy and deliver. This newsletter and our website provide many great ways to save on electricity and better manage your energy use.
We invest in technology to improve reliability, operations and efficiency. We also live by the cooperative difference - as a cooperative, we are not driven by profits and making a return for shareholders. Rather, we are service-driven and operate at cost. Our focus is on keeping the business financially strong on behalf of all members, in order to continue to provide safe, reliable service at the lowest practical cost. |