Rates for residential, commercial, and three-phase power users will be adjusted, effective with bills tendered in April of 2006, according to Buckeye Rural Electric Cooperative spokesman Steve Oden.
Rising costs of fuel, materials, and energy services prompt the need for an increase, the majority of which will be in the distribution portion of the BREC electric bill.
The average increase will be approximately $3 per month on consumption of 1,500 kWh of electricity.
BREC has raise its fixed charge in each rate category, with residential users seeing their charge go from $15 to $16 per month.
BREC members who lease area lights will pay an additional $3 per month for this service.
“Interest costs are rising; fuel costs are volatile; natural disasters have driven up the cost of material and contract labor. In order to keep pace with the higher cost of doing business, it became necessary for the BREC Board of Trustees to review our rates,” said Oden.
Rural electric cooperatives, municipals, and investor-owned electric utilities across Ohio and the nation are reacting to the higher cost of generating power and transacting business by adjusting rates. However, most electric rate increases are on a much smaller scale than sky-rocketing price hikes for fossil fuels. Natural gas users are absorbing home heating costs 48-100 percent higher than last winter; propane is also much higher this winter.
“BREC’s trustees, in voting to adjust electric rates, also discussed the burden many folks are faced with this winter with the increase in fossil fuel prices. They decided to delay our rate adjustment until spring,” explained Oden.
“We expect electric use to be higher this winter. Co-op members, who in the past relied on fossil fuels either for primary or supplemental heating, realize that kilowatt hours of energy are a comparatively good buy and certainly not as prone to radical price spikes.”
The announced rate increase comes one year earlier than had been expected. The last adjustment occurred in 2003.
“The fact is that economic conditions beyond anyone’s ability to predict or control have pinched us. Who in 2003 might have guessed that diesel fuel and gasoline prices would have gone through the roof like they did in 2005? Although fuel costs have moderated somewhat, we can expect continued volatility in the energy markets,” Oden said.
The spring adjustment, combined with certain service fee increases, allows BREC to maintain a Rural Utilities Service-approved earning ratio on its electric distribution business.
Wholesale power costs for generation and transmission are recovered through the energy charge and will continue to be passed through to consumers.
Oden noted that BREC is also changing its bill format in the spring.
“We have contracted with a bill printer and mailer located here in Ohio. Previously, our electric bills were produced in Alabama,” he said.
“The new format will be more understandable and concise, with lots more information of use to BREC members, including a plainly visible ‘due date’ above the fold of the bill,” Oden added.
Changes include elimination of the wholesale power cost adjustment line item. The PCA calculation will now float as part of the energy charge. Also, the amount of the state kilowatt-hour tax will be broken out separately on the new bill.
New rate class schedules, effective with April bills
The following tables show the new distribution rate schedules for residential, commercial, and three-phase power accounts. The adjusted rates are effective with BREC electric bills tendered in April. Please note that the adjustments are to distribution service only, the portion that BREC uses for operation and maintenance of its electric system. Additional charges for wholesale power generation and transmission, state taxes, and other services continue to apply.
RESIDENTIAL
Fixed Charge -- $16 per month
First 500 kWh – .04950 cents/kWh
Over 500 kWh -- .03500 cents/kWh
COMMERCIAL SINGLE-PHASE
Fixed Charge -- $20 per month
First 500 kWh -- .04950 cents/kWh
Over 500 kWh -- .03500 cents/kWh
COMMERCIAL THREE-PHASE
Fixed Charge -- $30 per month
Demand Charge – $6.25/kW
All kWh -- .03250 cents/kWh*
* Per kW of billing demand
Fees and trip charges increase effective Jan. 1, 2006
Fees and trip charges have been adjusted effective Jan. 1, 2006. The following list refers to policies that have been revised to reflect the changes:
Policy #440
“The security deposit, when required, will be kept by BREC until such time as the Consumer has completed 24 monthly payments with minimal delinquencies…” Current policy continues of allowing the security deposit to be waived with a letter of credit from the former electric utility. Also, the former 12-month security deposit refund policy remains in effect for co-op members of record prior to Jan. 1, 2006.
Policy #450
Account Origination Fee:
For service where a previous account has existed -- $30.
New Service Extension:
• The Cooperative will provide service only to the point of the service attachment at the top of the meter pole, on the side of the structure, or service mast of the structure, which will be furnished and installed by the member.
• Initial Service Inspection -- $50 trip charge if service is not ready or does not meet requirements.
• Re-Design Fee -- $50.
• Security Light -- $12 Monthly Fee.
Special Service Needs:
• Collection Call Fee -- $50.
• Reconnection Fee after Disconnection for Non-Pay -- $75 Monday-Friday, 7:30 a.m.-4 p.m.; $150 all other times.
• Reconnection Fee to Location with Pre-Existing Service (same member) -- $50 Monday-Friday, 7:30 a.m.-4 p.m.
• Second Trip Reconnection Fee -- $50.
• Meter reading Fee -- $20.
• Meter testing at Member’s Request -- $150 in advance, refundable if meter found to be defective.
• Trouble Call-Out Charge (where problem is determined to be on member’s side of point of connection) -- $50 Monday-Friday, 8 a.m.-3:30 p.m.; all other times, $150.
Penalty Charges:
Meter Tampering, $250 per occurrence, plus the cost of repairs and/or replacement.
Buckeye Rates