Rate Adjustment Needed
Increase to Begin with August Bills
URE constantly reviews performance across multiple areas. This year, a detailed rate study led us to the conclusion that there is a need for a moderate increase in distribution rates, essential to maintain our high service levels. We’re committed to providing affordable energy, despite the challenges of rising costs.
In 2023, our generation rate will see minimal change. Our generation cooperative, Buckeye Power, owns and operates baseload generation, limiting our dependency on market prices. However, we’re seeing an uptick in transmission rates, owing to the investments of the investor-owned companies that transport our electricity. To adapt, URE will continue billing transmission costs at cost directly to our members, rather than maintaining a fixed transmission rate.
Our goal remains unchanged: passing generation and transmission charges directly to members without markup. These charges comprise the majority of your monthly bill.
Despite consistent distribution rates over the past nine years, increased interest expenses and inflation necessitate change.
Here Are the Electric Rate Changes You’ll See in Your August Bill
For Rate A, applicable to homes and most small businesses, the generation cost remains stable with only a minimal increase. The generation energy rate is going from $0.03620 to $0.03788 per kilwatt-hour (kWh) – that’s less than two-tenths of a penny.
We are simplifying the distribution energy charge for Rate A from two blocks to one fixed rate. This change doesn’t affect URE’s total revenue, but ultimately your first 1,000 kWh per month will reduce in cost and anything over 1,000 kWh will increase. Currently, the first 1,000 kWh are charged at $0.0432 / kWh and anything over 1,000 is charged at $0.0245. The new rate is $0.03661 for all kWh sold in Rate A.
The Rate A monthly distribution service charge will increase from $20 to $25. The minimum charge will remain the same at $35 per month.
For Rate T, applicable three-phase services, which applies primarily to larger commercial loads, the generation energy cost will not be increasing, and the generation demand component will increase from $5.45 to $5.96 per kW.
Here Are the Natural Gas Rate Changes You’ll See on Your August Bill
Small Gas Service - Residential and Small Commercial
(Natural Gas Rate SGS) – The natural gas monthly service charge increases from $20 to $30. The per CCF (cubic feet) natural gas charge drops from $0.35 to $0.25. These costs offset each other somewhat but will increase an average member’s bill by around 6%.
Medium Gas Service - Commercial (Rate MGS)
The natural gas monthly service charge increases from $25 to $50. The first 250 CCF will remain at the same rate of $0.35, all gas from 251 to 1000 CCF will decrease from $0.33 to $0.30, and any gas sold over 1,000 CCF will decrease from $0.33 to $0.27.
These costs offset each other, and the average MGS member’s bill will be about the same or slightly higher if usage is low.
In summary, we expect most residential electric bills to increase less than 3% this year, and for our three-phase electric accounts, bills to stay roughly the same. For our natural gas residential members, you can expect an average increase of around 6%, depending on usage, and for our commercial natural gas members, bills will remain about the same or just slightly higher.
We aim to minimize any increase in utility bills, and to pass costs on to our members in a fair manner. Remember, we’re here to serve our owners, not make a profit. We are your electric and natural gas cooperative.
Anthony Smith
CEO/President