the


Light Post May - June 2017


suppliers are making it necessary for Kiamichi Electric Cooperative (KEC) to adjust its rate structure. The good news is most members won't notice.


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The changes, which go into effect June 28, include a seven dollar increase in the service availability charge.


For the majority of members, the increase in the service availability charge will be fully offset by a reduction in the overall energy charge. Brett Orme, Kiamichi Electric CEO, said the rate is designed to minimize the impact on consumers.


"The changes should not affect the revenue collected by Kiamichi Electric," he explained. "The new rate structure simply allows KEC to spread its fixed costs across all classes of consumers."


Fixed costs include items such as poles, wire, meters, and transformers that are required to provide electrical service. Whether kilowatt-hour sales are high or low, a utility must own and maintain these items to provide reliable electric service.


The service availability charge is used to recoup these costs, no matter how much energy each member consumes. Including those costs in the basic rate would cause some members to bear an unequal share of the fixed costs.


hanges in the way electric utilities are billed for wholesale electricity by regional power


PUBLISHED FOR MEMBERS OF KIAMICHI ELECTRIC COOPERATIVE


Rate Change Ahead for KEC Members The good news is most members won't notice the difference.


"If the board sets the service availability charge too low, then energy rates must go up," Orme explained. "Fixed costs would not be distributed equiitably."


An appropriately priced service availability charge helps keep cost for all members more equitable, he added.


Nearly every electric utility charges a similar fee for the same reasons, but the amount varies due to consumer density. Utilities with 40 to 50 consumers per mile are able to spread fixed costs across a broader base of consumers.


"At an average of 5.25 members per mile, Kiamichi Electric has a lot less revenue to work with,"Orme said.


The Kiamichi Electric board of trustees approved the rate change at their monthly meeting in May. Their decision follows a cost of service study performed by R.E. Wilson, an independent rate consultant who recommended the change.


The study showed that while Kiamichi Electric rates are adequate to cover the cost of operations during normal conditions, the changes in rate structure would better prepare the co-op for significant changes in wholesale power pricing.


If you have questions about the rate change, please call your co-op at 800-888-2731.


Power outage? Report it FAST with Kiamichi Electric's smartphone app!


Use the app to quickly connect to your co-op customer service portal where you can report power outages, receive updates and view KEC's outage map. Download the app at the App Store or GooglePlay, or visit www.kiamichielectric.org.


democracy is guatemala


for co-ops ■ page 2


mission ■ page 3


district


meetings ■ page 4


summer


Watch For Right of Way Crews Kiamichi Electric crews are clearing and spraying right of way in various locations across co-op service area. You can help by making sure our team has easy access to your property. Thank you for your cooperation


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Kiamichi Electric Cooperative 944 SW Highway 2 • PO Box 340 Wilburton, Oklahoma 74578


tele: (918) 465-2338


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


www.kiamichielectric.org email: support@kiamichielectric.org


Hours of Operation Monday-Friday 8 am to 5 pm


24-Hour Outage Hotline (800) 888-2731


CONVENIENT BILL PAYMENT OPTIONS


■ 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.


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landscape for


savings ■ page 6


the team that


saves lives ■ page 7


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