| co-op value Is Prepaid Billing
Right For You? Avoid “after shock” by paying ahead for your electricity
option: Pay for the electricity they used after they used it. With seasonal shifts in usage, this caused some members to suffer from electric bill “after shock.”
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CEC's prepaid option revolutionized the way co-op members pay their bills by allowing them to pay ahead for their power. For some members, prepaid is the perfect option.
HOW IT WORKS
Rather than waiting to be surprised by your monthly electric bill, CEC prepaid accounts receive alerts when their account balance reaches a minimum threshold. When you enroll in prepaid billing you are free to choose your own limit of $20 or higher.
Once your account hits the threshold point, you can choose to make a payment of any amount over $1 to ensure your balance does not reach zero. When that happens, your electricity goes off.
NO FEES
The difference in a prepaid account being disconnected versus traditional accounts being disconnected is a reduction in fees.
THAT’S A FACT:
Consumers enrolled in pre-pay programs use from 5.5 to 14% less electricity than consumers enrolled in traditional bill payment plans.
efore Choctaw Electric Cooperative (CEC) created its prepaid billing option, co-op members had one
“To be reconnected, prepaid members only need to make a payment that puts their account back in the green by at least $10," says Hilary Pound, CEC billing supervisor. "Traditional accounts are charged fees for reconnection.”
Prepaid members aren’t charged reconnect fees because there is less risk associated with their account, Pound explains. “A traditional account may have 60 days worth of usage by the time it is disconnected,” she adds. “Prepaid accounts never get that far behind, which helps them avoid added expenses."
NO DEPOSITS
When a new member calls for a service connection, they are likely to be quoted a security deposit. New members who sign up for prepaid billing can skip the deposit and pay just $125 to start a prepaid account instead.
ENERGY SAVINGS
Prepaid is a sure-fire way to save energy. Studies show consumers who pre-pay use from 5.5 to 14 percent less electricity than traditional consumers.
“Members who pay in advance keep a closer eye on how much and when they use electricity,” says Pound.
No fees or deposits, flexible payments and proven energy savings make prepaid attractive to a variety of CEC members.
To visit with your co-op about prepaid billing, please call 800-780-6486 or visit www.
choctawelectric.coop for more details.
SEND US EMAIL: Please email questions for Ask Your Co-op to: Jennifer Boling,
jboling@choctawelectric.coop. Or, mail questions to Choctaw Electric Cooperative, PO Box 758, Hwy 93 North, Hugo,Oklahoma 74743.
CO-OP ASK YOUR ■ What is the meter charge of my bill?
The CEC meter charge is confusing to members because it covers way more than the actual cost of your meter. Most utilities use this fee structure, but it is more commonly referred to as a consumer charge or basic service fee.
This fee covers all the various fixed costs associated with keeping safe and reliable electricity flowing to your meter. This includes the cost of maintaining infrastructure such as poles, substations, transformers, and power lines.
If a car crashes into an electric pole
or vandals rip out the copper conduit from co-op electrical equipment, these costs are covered by the monthly meter charge. Labor and expenses involved in administering all of the services provided by your co-op including billing, accounting, member services, energy audits, engineering, online services and more are all covered by this fee. It also pays for line upgrades, right of way maintenance, and many other system improvements.
If the fixed costs associated with operating your co-op were factored into your monthly electric rate instead, it would have negative impact on your service reliability, not to mention causing real financial woe for your co-op. For example, during mild weather when energy usage decreases, the drop in revenue might not cover daily operating costs. During periods of high usage, it would cause an excess of revenue to be collected.
The meter charge ensures a steady, balanced revenue stream that reflects the accurate cost of service.
CEC Inside Your Co-op | MARCH 2016 | 7
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