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Powerline Press NEWSLETTER November 2015


A Supplement of Oklahoma Living Published by Lake Region Electric Cooperative for its members. Vol. 6


 Tip of the Month


Reduce energy for water heating. Take simple steps like lowering your heater’s temperature and installing low-  heads to reduce your water heating bills.


Source: Department of Energy


Don’t forget to Fall Back, November 1st. Set your clocks back one hour.


Cost to Provide Electric Service to Members is Increasing


$ $


KAMO AECI No. 11


Associated Electric Cooperative (AECI) is the electricity generation power supplier located in Missouri that supplies power for LREC. All the electricity provided to our members is purchased from AECI. AECI’s board has approved a cost of ser- vice study for 2016, increasing rates and elimi- nating the energy rate discount. Data from 2014 National Utilities Cooperative Finance Corporation show member distribution co-ops served by AECI and its six owner generation and transmission (G&T) co-ops continue to buy power at a lower cost than average paid by nonmember distribution co-ops  and diverse generation and transmission assets have enabled its board to hold steady wholesale power rates since 2009, as well as provide rate discounts to the six G&Ts in 2010 through 2015, de- spite increasing fuel, operations, maintenance and new environmental compliance costs.


LREC


AECI board re-examined various cost elements of demand and energy components and realigned them to ensure margins are collected proportionally. There will be a two-step rate increase; effective January 1, 2016, the energy rate discount will be eliminated from the current rate structure and effective April 1, 2016; new rate structure will go in effect.


Contributing factors that make AECI rate increases necessary for 2016 are:


• Anticipated reduced off-system sales margins due to low natural gas prices dampening energy market prices and reducing off-system sales revenue. • Increased environmental compliance costs from EPA on green house gas emissions. • Increase in the delivered coal costs to power plants from the train rail system.


LREC’s board has been diligent in keeping our rates to our members steady. LREC has not had a rate increase in seven years.


LREC Powerline Press Continued on page 2 Electric Rates 1


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