This page contains a Flash digital edition of a book.
“Factors determining the price of power—fuel costs, raw materials, transportation, etc.—have continued to rise while our rates have not.”


—CEO Max Meek


second change moves the current power cost (PCA) and TIER cost adjustment charges into “base” rates (customer and energy charges). Tis is called “rebasing” and is also revenue-neutral. Te PCA recovers the


difference between the base rate and the actual cost of producing power, while the TIER covers changes required to meet cooperative mortgage obligations. Fuel prices and other factors


affecting the cost of producing power have changed since existing rates were first structured. Adjustment factors now total about 3.7 cents per kWh. Te total monthly bill paid by each member is the sum of kWh used (charged under the base rate) plus the adjustment factors. As a part


RESIDENTIAL RATES


SUMMER ON-PEAK OFF-PEAK SHOULDER ALL kWh WINTER


1ST 1,000 kWh kWh > 1,000


of the rate change, the base rate is increased 3.7 cents per kWh, while the adjustment factors are decreased 3.7 cents per kWh. Tis means “rebasing” makes rates reflect the actual cost of power more accurately and is entirely revenue neutral to both members and OEC.


A. For residential customers, the service availability charge and on-peak energy charges are increasing, while off-peak and winter charges are decreasing. In addition, the current two season (summer and winter) rate design is changing to a three season (summer, winter, and shoulder months) design.


EXISTING PCA+TCA RATE Jun.-Aug.


$0.036915 $0.150000 $0.186915 0.036915


0.073000 Sept.


0.036915


0.036915 0.036915


SERVICE AVAILABILITY CHARGE 0.073000 Oct.-May


0.073000 0.057000


0.109915 0.093915 $0.50/day


*All cost adjustments applied. Red text denotes negative amounts. News Magazine 7


(0.002200) (0.002200)


0.109915 0.109915


$(0.002200) (0.002200)


(0.002200) TOTAL* PCA+TCA


Q. What structural changes are being made to residential rates?


Q. Why is the service availability charge being increased?


A. Tere are certain items that cost the same for each member regardless of the service size or the number of kWh they consume, such as meter reading, billing, and minimum transformer and delivery system costs. Te cost-of-service study determined the monthly consumer-related cost of providing service to a residential consumer is over $50 per month, while the existing service availability charge for residential members is 50 cents per day (around $15 per month). Te proposed changes raised that charge to 60 cents per day (about $18 per month). While this fee is a far cry from completely Continued on next page.


PROPOSED RATE


Jun.-Aug.


$0.256688 $0.254488 0.102688


Mar.-May/Sept.-Nov. 0.115252


Dec.-Feb.


0.092752 0.065252


0.090552 0.063052 $0.60/day


(0.019363) (0.030863) $3


0.100488 0.113052


$0.067573 (0.009427)


0.003137 DIFFERENCE TOTAL*


Co-op Business


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154