Appalachian Electric Cooperative Announces Upcoming Rate Change
We’ll all soon be paying a bit more for the electricity we use. That’s according to Appalachian Electric Cooperative General Manager Greg Williams. “As of April 1st, rates are projected to increase by about 1.97 percent,” he announced. “This rate change is not just advisable but necessary in order to remain financially stable and secure.”
Williams says that AEC is in the midst of responding to truly unprecedented circumstances that are requiring the Cooperative to adapt in ways that could not have been foreseen just a short time ago.
“We had experienced a steady rate of growth in members ever since the Co-op was formed back in 1940,” he explained. “That is, right up until the recession began in 2008. Since the economic downturn, our growth in new customers has been at a virtual standstill. The cost of materials and other expenses have continued to rise, and—without a significant number of new member-consumers among which to spread out costs—that means we must manage differently going forward.”
He goes on to note that AEC has not had a rate increase since April of 2011: “We held rates steady for as long as we could, but the time has come when forestalling an increase is no longer possible.”
Five things Co-op members need to know:
This change will affect all AEC members. Co-op customers are divided into three major “classes:” residential, commercial, and large industrial. Rates for each class will increase, as will rates for security lights and other lighting services.
The impact will be different for each customer class. Residential members will experience the greatest impact, due to the fact that costs of providing service to that segment of the membership are higher than those associated with any other class. Residential use drives peak demand on AEC’s system.
All members will see a $2-per-month increase on their base customer charge. This cover’s the Co-op’s basic cost of providing and maintaining all the infrastructure (poles, substations, power lines, etc.) necessary for delivering electricity, regardless of the amount used.
The “tiered” rate for residential service has been eliminated. This means that residential consumers will pay exactly the same amount for each kilowatt-hour used, regardless of the total. (Previously, the rate declined slightly after use reached the 1,000-kWh level.)
TVA’s seasonal rate structure will still apply. Rates are highest during the summer months, followed closely by winter; no additional adjustment is made during the spring and fall.
“There’s nothing easy about a rate increase,” says Williams, “for those who must impose it, and certainly not for those whose electric bills will be affected by it. The good news is, there are many energy efficiency measures that we can take that will serve to decrease the number of kilowatt-hours we use each month. For more information about how to manage your energy use or to learn more about your electric bill, contact AEC’s Member Services department at 865.475.2032, ext. 1880.”
