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POWER CIRCUIT


Visit us on the Internet at: www.vvec.com APRIL 2014


Published for the members of Verdigris Valley Electric Cooperative A Supplement to Oklahoma Living.


TWACS Meters Fully Deployed Throughout System p. 4


Electric Rates Increase this Summer Customer Charges Increase Less than $5 a Month for Residential Consumers


Effective June 1, the customer


charge on your monthly electric bill is going to increase by about $5. This will result in an increase in the co-op’s annual revenues of about 3 percent. “Several years ago, VVEC made a commitment to design rates that were more in line with the cost of providing service on a per revenue class basis,” says VVEC’s Director of Finance Clyde Willard.


A 2009 cost of study on VVEC’s rates


provided information on what the customer charge should be in each rev- enue class, so the co-op could recover costs associated with providing service to each meter location. “Historically, the customer charge has been set at an amount that was considerably less than what recent cost of service studies have shown it should be,” says Willard. “When the customer charges are set too low, it causes a portion of the fixed cost to be recovered in the energy charges. Rate designs such as this tend to result in members who use large amounts of electricity paying a greater portion of the fixed costs when compared to the fixed costs being recovered from the smaller electric users. Our intent is for there to be equality through each rate class.”


Willard goes on to point out the rate increases will be less than $5 a month


for residential and small commercial consumers, and less than $10 a month for large power consumers.


Residential Class Small Commercial Class Large Power Class


The increase will be applied to all bills mailed on or after June 1.


$20.20 to $25.00 $25.25 to $30.30 $50.50 to $60.00


Rate Comparison - Summer Rates (Assuming a .005 Power Cost Adjustment) Residential


kWh Billed


0 500


1,000 2,000 2,500 5,000


Small Commercial


kWh Billed


0 500


1,000 2,000 2,500 5,000


Current Rate Billing


$25.76 70.33 114.90 204.04 248.61 471.45


New Rate Billing


$30.60 75.17 119.74 208.88 253.45 476.29


Dollar Increase


$4.84 4.84 4.84 4.84 4.84 4.84


Current Rate Billing


$20.60 64.41 108.22 195.84 242.25 474.30


New Rate Billing


$25.50 69.31 113.12 200.74 247.15 479.20


Dollar Increase


$4.90 4.90 4.90 4.90 4.90 4.90


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