2024 Rate Adjustment
Washington EMC is a not-for-profit electric utility. This means that we recover enough revenue from our customers to cover the cost of our day-to-day operations, keep our distribution system updated to ensure reliable service and meet all lender requirements. Any excess margins generated from our operations are assigned back to our customers each year in the form of capital credits.
Cost of service studies are performed by independent third-party rate consultants to analyze our operating costs, lender requirements and current revenue structure to evaluate whether there is a rate adjustment needed for Washington EMC to remain in a strong financial position.
After thorough examination of the results and recommendations from our most recent study, our Board of Directors has approved a rate adjustment that will take effect in January of 2024. There are three main components of Washington EMC residential and general service rates: Base charge, energy charge and power cost adjustment. Each of these components were adjusted based on the cost of operations and revenue requirements needed for Washington EMC to operate a financially sound cooperative.
The cost of goods and services has risen significantly in the last few years. We know that this has affected everyone in our communities, and this was in the forefront of our minds when making this decision.
The base charge is currently $27.50 for residential, general service and irrigation rates. This covers a portion of the cost of operating the cooperative that is the same for all members on these rates regardless of the level of kWh consumption. These costs include keeping a meter at each location, reading those meters, maintaining right of way, customer service and other routine system maintenance. As all of these costs have risen over the last several years, it is necessary to adjust the base charge from $27.50 to $32.50, per month. Similar adjustments are being made to components of large commercial rates as well to ensure all customers share in these costs.
Energy charges and the power cost adjustment are both dependent on the level of kWh consumed by a customer during the month. Therefore, these cost components have been adjusted to reflect increased power cost and regulatory cost since 2015 when our last cost of service study was performed. Starting in 2024, our power cost adjustment will be lowered while our energy cost will be slightly higher.
To give you a reference point for what these adjustments mean for you as a consumer, if you use 1,000 kWh in a month, your bill will go from $138.66 to $144.20. This slight increase is primarily driven by the increase in the base charge to evenly distribute fixed costs to our members.
Reducing your energy consumption is the easiest way to reduce your monthly bill. Energy tips and tricks can be found on our website or go to the department of energy website https://www.energy.gov/save to find ways to save. If you have any questions or want to talk to a customer service representative about your bill and how it will change, please call (478) 552-2577.