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PAGE 2 | NOVEMBER 2013


TCEC moves toward equalizing rates Average Prices for Residential Electricity 2011 figures, in cents per kWh


BY JULIANN GRAHAM, Communications Coordinator


Rates will change slightly for members this month as the cooperative takes steps to equalize its rate structure.


Member’s receiving service in the residential, general service, oil well and industrial rate classes will see minor rate changes beginning Nov. 1, 2013. These changes were approved by the Tri-County Electric Board of Trustees.


“Our goal is for the rates to all classes of members to be equal,” CEO Jack Perkins said. “This goes back to the cooperative principle of Economic Member Participation.”


WA 8.3¢


OR 9.5¢


11.6¢ 14.8¢ 11.1¢


Members aren’t just paying their electric bill when they write a check to their electric cooperative, they’re paying themselves. Rates, fees and services are set to benefi t the entire cooperative. When the cooperative has margins (when revenue exceeds costs) those margins are allocated to members based on their purchases. The cooperative uses this allocated margin as equity for a time then returns it to members as a patronage capital retirement at a future date.


AZ CA NV 9.0¢ UT 11.3¢ 11.0¢ 11.1¢ 17.6¢ 34.7¢ 34.7¢ HI AK TX NM CO 7.9¢ ID


WY 9.1¢


MT 9.8¢


ND 8.6¢


9.4¢ NE


SD 9.3¢ 10.7¢


OK 9.5¢


KS


U.S. Average: 11.7¢ per kWh ME


11.0¢ IA


MN 13.0¢ 10.5¢


MO 9.8¢


9.0¢


LA 10.2¢ 9.0¢


AR 11.8¢ 10.1¢ MS 11.1¢


10.0¢ AL


TN 11.1¢ 11.5¢


Residential Average Price (cents per kilowatt-hour)


Under 9.5¢ 9.5¢ to 12.0¢


Over 12¢


Source: U.S. Energy Information Administration Numbers rounded to nearest tenth of a cent Updated February 2013


energy charge per kilowatt-hour. The service availability charge is not changing.”


The November 2013 rate change is the continuing process of equalizing the cooperative’s rate structures. Currently, the cooperative has two residential and two general service rates based on the power supplier associated with the location of the service. This results in one segment of the cooperative’s membership subsidizing another. Also, multiple rates for the same service type makes the billing process more complex.


Typically, a rate change is put into effect due to the fi nancial need of the cooperative. This change is unique because the cooperative is in good fi nancial health.


“The residential and general service member will see their bill change by $0.007 per kilowatt-hour,” Perkins said. “Because this change does not completely equalize the rates, the remaining difference may be corrected at a later date so we have single rates for all classes of service. The only change to the residential and general service rates at this time is to the


The Power Cost Adjustment (PCA) will continue to be calculated based on actual power supplier costs in the same manner it has in the past.


Members can check their bill to see which rate they are on. The number on the bill corresponds to a rate in the Rules and Regulations of Service published on the cooperative’s website at www.tcec.coop.


Some commercial rates will change to better recover the cost of providing service to those members. The rates that are changing are oil well service and industrial power service. The cooperative is also introducing a commercial wind farm rate.


Direct any questions regarding billing or any other aspect of electric service to Tri-County Electric at 580-652-2418 or memberservice@tcec.coop. n


FL GA IL WI


13.3¢ IN


MI


VT: 16.3¢ NH: 16.5¢ MA: 14.7¢ RI: 14.3¢ CT: 18.1¢


11.4¢ 9.2¢ KY OH


WV 9.4¢


18.3¢ 13.3¢


10.6¢ NC


11.1¢ SC


10.3¢ VA


NJ: 16.2¢ DE: 13.7¢ MD: 13.3¢ DC: 13.4¢


PA NY 15.4¢


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