By Todd Ware, President & Chief Executive Officer

About this time every year, The Energy Cooperative’s management staff begins the budgeting process for the next year. This process involves looking at revenues, operating expenses, and capital expenses. The process also includes reviewing our rates to ensure fixed costs are covered by fixed charges, and variable costs are covered by variable charges. Our goal is for all of our members to share fixed costs equally, even when no energy is being used. If the fixed rate is not high enough, large users pay a disproportionate share of the fixed charges.

After reviewing our current rates, residential electric and natural gas rates will be adjusted effective
January 1, 2020.

Electric Members

Your electric bill has three main parts:

  • The fixed monthly facility fee covers the cost of connecting you to the electric grid. This cost doesn’t change depending on the amount of electricity you use each month.
  • Generation & transmission is the cost to get electricity to The Energy Cooperative’s system. This charge is a pass-through cost from our power supplier, Buckeye Power. This charge accounts for more than 50 percent of your electric bill.
  • The distribution energy charge is calculated based on the amount of electricity you use each month.

Electric Facilities Fee Adjustment

For residential electric members, the facilities fee adjusts from $26 to $27 per month effective January 1, 2020. There will be no change to the generation and transmission charge and no change to the distribution energy charge.

Natural Gas Members

Your natural gas bill has four main components:

  • The fixed monthly facility fee covers the cost of providing you with access to the natural gas pipeline system. The cost doesn’t change depending on the amount of gas you use.
  • The infrastructure replacement rider (IRR) is a fixed charge to recover the replacement of aging pipelines to comply with federal and state guidelines.
  • The gas cost is the commodity and transportation cost for the natural gas.
  • The distribution charge recovers variable operating costs based on your natural gas use.

Natural Gas Facilities Fee Adjustment

For residential natural gas members, the facilities fee adjusts from $22 to $23 per month effective January 1, 2020. There will be no change to the distribution charge.

The Cooperative Difference

To ensure the cooperative’s return on revenue, rates must align with assets and operating costs. Recent member surveys tell us that price, service, and reliability are most important to you. We work hard to control our expenses each day and balance those costs while bringing you reliable energy.

Each day we look for ways to make our operation more efficient and to be good stewards of each dollar we spend. We don’t want rates to go up and we don’t like applying rate adjustments, but these changes are necessary. The Energy Cooperative Directors and employees are committed to providing you with a good value for the service we provide. After all, we are a cooperative. We exist for our members, not to make a profit for shareholders. That’s a big part of the cooperative difference.

If you have questions regarding the adjustments, please contact The Energy Cooperative’s Member Service Department at (800) 255-6815 or visit myenergycoop.com.