Rate Adjustment for 2010
Date posted: 2010-01-06
Costs at the Cooperative are continuing to increase, like they are for you and everyone else. It is necessary to have a small revenue increase adjustment effective January 1, 2010. The Directors have approved a revenue increase to the present revenue of approximately 2% effective with the January usage for 2010. This increase will be included on the billing mailed February 5th.
The last rate adjustment was in 2004 for the Residential class and 2006 for the Commercial rate class.
The adjustment for each customer class and usage level will vary, but the average revenue increase will be about 2% except for the Commercial rate class.
Recent cost of service studies show revenues for the Commercial rate class have fallen short of meeting the contribution to margins, resulting in a need for a larger rate adjustment.
Residential rate changes stay the same for the first 1250 kWh. The percentage change in the new rate gradually increases as the usage over 1250 kWh increases.
The Commercial Without Demand rate class has changed from a block rate at 1500 kWh to a levelized rate of $0.0720 per kWh for all kWh usage.
Commercial With Demand now has a $73 Facility Charge for all users instead of the $50, $55, or $100 Facility Charge with the former rate schedule. All availability demand is billed at $3.11 per kW. The Distribution Administrative charge is $0.0089 per kWh and the Power Charge per kWh is $0.0345 for all months of the year.
These changes in the Commercial With Demand rate class resulted in a higher percent increase for some customers depending on the billing demand.
The latest Cost of Service Analysis showed these adjustments were necessary for equal contribution to margins for each rate class. The new adjustments accomplish this and prevent any rate class from subsidizing another.
No adjustment was necessary to the Large Power rate class. The Cost of Service Analysis showed an adequate contribution to margins.
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