Rate Decrease Beginning January 1st
I hope all of you had a Merry Christmas and a Happy New Year! As we begin the New Year, I’m pleased to inform you that your Cooperative’s Board of Trustees approved a retail rate decrease for every Cooperative member that will begin January 1st. Collectively, this rate decrease will save Cooperative members approximately $7.4 million per year. This rate decrease is possible due to lower wholesale power costs from the Cooperative’s supplier and other deferrals and credits.
The residential rate classes will receive a reduction in the energy charge rate. The actual amount of rate reduction that a member will experience depends upon the amount of energy used each month. Rate studies show that the average residential member that is on the standard residential rate (Rate A) and consumes an average of 898 kwh per month will experience an approximate 8.8% rate reduction which equates to an annual savings of over $135 per year. The average residential member that is on the all-electric residential rate (Rate AH) and consumes an average of 1,536 kwh per month will experience an approximate 8.7% rate reduction which equates to an annual savings of over $200 per year.
Small business, irrigation, commercial and industrial accounts will also receive a rate reduction. The actual amount of rate reduction that each member will receive depends upon the amount of demand utilized, energy consumed and the respective load factor for each account.
Your Cooperative reviews the rates paid by our membership and compares that to the other 24 electric cooperatives around the state. Your Cooperative’s electric rate consistently ranks among the lowest electric rates in the state. With this rate decrease and in reviewing currently available information, your Cooperative’s average residential rates are the 2nd lowest of all Cooperatives in the state.
At the time this article is being written, the Cooperative expects to end the year 2020 in sound financial condition and deliver over 720 million kilowatt-hours to all of you as Cooperative members. Residential energy consumption was slightly under budget due to milder weather conditions experienced while large commercial energy consumption decreased significantly which is primarily attributed to the declining coal market.
In 2021, your Cooperative will continue to make the necessary investments in the distribution facilities that serve your energy by rebuilding aging infrastructure, replacing degraded poles and performing other maintenance activities including pole testing, regulator maintenance, breaker maintenance and sectionalizing in order to help ensure a safe and reliable electric supply. In fact, the maintenance work will begin in early January with the testing and treatment of approximately 8,000 poles and the continuation of the vegetation management program by trimming and clearing in 6 substation areas. Cooperative members will receive more details on the 2021 vegetation management program in next month’s article.
On behalf of the Trustees and all employees, we want you to know that your Cooperative is committed to providing reliable and quality service while keeping rates affordable. We thank you for the opportunity to serve you.