This page contains a Flash digital edition of a book.
the


July - August 2014


Light Post


electric bills beginning September 1. The minimum bill will increase by $1.50.


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The fee adjustment comes on the heels of a recent cost of service study conducted by R.E. Wilson, an independent rate consultant. The cost of service study is a common practice among utilities to assess financial stability and ensure revenues are in line with expenses.


Jim Jackson, Kiamichi Electric CEO, said the study showed that the slight increase in the residential customer service charge is needed to ensure reliable and affordable service to members. "Reliable electric service at a reasonable price is something our members count on, and we are committed to delivering that on a daily basis," he said. "To do that responsibly means making hard decisions that protect the integrity and financial stability of the co-op.”


"Our goal is to minimize possible increases by maximizing the services that will help our members save.""


—JIM JACKSON, KIAMICHI ELECTRIC COOPERATIVE


iamichi Electric members will see a $1 increase in the customer service charge on residential


PUBLISHED FOR MEMBERS OF KIAMICHI ELECTRIC COOPERATIVE


Study Finds Fee Increase Needed to Protect Service Reliability


improvements such as replacing worn poles and transformers, and upgrading wire to improve voltage capacity in several areas.


Right of way maintenance, labor, employee training, vehicle maintenance, repairs and fuel, and interest and taxes paid by the co- op are also covered by customer service fees. Office and warehouse space accounts for less than half a percent of these costs.


Jackson explained that the fee helps the co-op maintain stability by providing a steady revenue stream that is not affected by regulatory issues, swings in fuel prices, or ups and downs in usage. "When the fixed costs of operating an electric co- op depends solely on energy charges, what happens is, when energy usage decreases there isn't enough revenue to cover the cost to operate, and if usage increases, too much revenue is collected," he said. "It's also the most equitable way to distribute these costs because every member pays the same amount."


With EPA regulations threatening to increase wholesale power costs associated with coal-fired generation, co-ops are already anticipating higher power prices ahead, Jackson noted. Protecting members from potential rise in wholesale electricity prices is the reason behind two of KEC's newest energy efficiency programs.


Kiamichi Electric customer service fees cover certain fixed costs associated with operating and maintaining the co-op. Over 24 percent of this revenue is used to purchase construction materials such as wire, poles, transformers and other materials necessary to build and upgrade lines. Since January 1, KEC has spent roughly half a million dollars on service


KEC's geothermal program encourages members to install geothermal HVAC systems by dramatically reducing the costs involved in installation, and providing valuable rebates on units installed. The co-op's partnership with Energy Pioneer Solutions helps members improve their home's efficiency by targeting the most effective improvements for each home, and providing financing to cover the costs.


These programs aim to lower the co- op's system-wide demand, which is a determining factor in what members pay for wholesale power. Other products and


Cont'd on pg. 7 rules from dc


matter to you ■ page 2


board votes on


new building ■ page 3


how power is


delivered ■ page 4


make energy


saving easy ■ page 5


Sign Up For Savings! Lower your monthly energy costs and finance needed improvements via KEC's Energy Partnership with Energy Pioneer Solutions. Visit www.kiamichielectric.org for details.


Kiamichi Electric Cooperative


966 SW Highway 2 • PO Box 340 Wilburton, Oklahoma 74578


tele: (918) 465-2338


toll free: (800) 888-2731 FAX: (918) 465-2950


Kiamichi Electric on the Web www.kiamichielectric.org


www.facebook.com/kiamichielectric email: support@kiamchielectric.org


Hours of Operation Monday-Friday 8 am to 5 pm


24-Hour Outage Hotline (800) 888-2731


CONVENIENT BILL PAYMENTOPTIONS


■ Pay online using our secure payment site at www.kiamichielectric.org.


■ Pay via smart phone, iPad or tablet using our mobile app. Download the free app at www.kiamichielectric.org.


■ Pay via telephone 24 hours a day using a major credit card at 800-888-2731.


■ Pay in person at Kiamichi Electric, or use our drive-through payment drop box, available 24 hours a day.


■ Pay using the payment kiosk at the following authorized Kiamichi Electric payment locations.


Dr. Doo’s Lakeside Motor Sports Highway 9 East, Longtown


BancFirst E. Carl Albert Parkway, McAlester


The Rhone Agency 1318 S. Main Street, McAlester


Western Auto 312 Dewey Street, Poteau


emission limits to


be set by states ■ page 7


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