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On April 1, Intercounty Electric Cooperative will implement their first rate adjustment since Jan.1, 2009.
The three percent increase is based on numerous factors to cover the costs of doing business, according to an Intercounty press release.
“As owners, the cooperative’s consumers share in these costs. The cooperative’s managers and board members recognize the important role they have and apply best practices when setting rates for their member-consumers. The rate design must demonstrate value to the member-owners,” the press release notes.
“The assembly and design of electric rates is vital to the financial health of a cooperative because it has a direct impact on the cooperative’s ability to pay its operating and financing costs. However, setting reasonable, affordable rates is a challenge – difficult and demanding.”
A recent Cooperative Finance Corporation (CFC) survey indicates that about 51 percent of electric cooperatives expect they will have to raise their residential electric rates by 5- 20 percent per kilowatt-hour (kWh), on average, each of the next five years.
These increases are mostly expected to result from electric cooperative investment in generation and transmission facilities, pollution/environmental regulations, the anticipated volatility in commodity fuel costs, increased distribution system expenses and other capital costs. In addition, while their electric rates are rising, consumers are also likely to use more electricity.
Effective April 1, 2012, all rate classes will be adjusted approximately 3 percent. Members will see the increase reflected on their May 1 electric bill. What this means is that for the May 1 bill, the kWhs being billed for will go from $0.807 to $0.831 per kWh.
For the average household usage of 1,300 kWhs that is a difference of $3.12.
Dusk-to-dawn lighting flat rates will increase approximately $0.25 to $0.35 a month depending on the lamp type.
The cooperative’s rate structure is designed to collect adequate revenue from the member-consumers who use the electricity. At the same time Intercounty continues to encourage members to use electricity and resources wisely—which will help reduce current and future costs.
For questions or concerns regarding this rate adjustment, call the Intercounty office at 573-674-2211 or 866-621-3679.
Intercounty Electric Cooperative Association serves 2,916 square miles covering Phelps, Dent and Texas counties and parts of seven other counties. IECA operates 5,814 miles of line, serving over 30,000 active meters and employs 116 local citizens.
On April 1, Intercounty Electric Cooperative will implement their first rate adjustment since Jan.1, 2009.
The three percent increase is based on numerous factors to cover the costs of doing business, according to an Intercounty press release.
“As owners, the cooperative’s consumers share in these costs. The cooperative’s managers and board members recognize the important role they have and apply best practices when setting rates for their member-consumers. The rate design must demonstrate value to the member-owners,” the press release notes.
“The assembly and design of electric rates is vital to the financial health of a cooperative because it has a direct impact on the cooperative’s ability to pay its operating and financing costs. However, setting reasonable, affordable rates is a challenge – difficult and demanding.”
A recent Cooperative Finance Corporation (CFC) survey indicates that about 51 percent of electric cooperatives expect they will have to raise their residential electric rates by 5- 20 percent per kilowatt-hour (kWh), on average, each of the next five years.
These increases are mostly expected to result from electric cooperative investment in generation and transmission facilities, pollution/environmental regulations, the anticipated volatility in commodity fuel costs, increased distribution system expenses and other capital costs. In addition, while their electric rates are rising, consumers are also likely to use more electricity.
Effective April 1, 2012, all rate classes will be adjusted approximately 3 percent. Members will see the increase reflected on their May 1 electric bill. What this means is that for the May 1 bill, the kWhs being billed for will go from $0.807 to $0.831 per kWh.
For the average household usage of 1,300 kWhs that is a difference of $3.12.
Dusk-to-dawn lighting flat rates will increase approximately $0.25 to $0.35 a month depending on the lamp type.
The cooperative’s rate structure is designed to collect adequate revenue from the member-consumers who use the electricity. At the same time Intercounty continues to encourage members to use electricity and resources wisely—which will help reduce current and future costs.
For questions or concerns regarding this rate adjustment, call the Intercounty office at 573-674-2211 or 866-621-3679.
Intercounty Electric Cooperative Association serves 2,916 square miles covering Phelps, Dent and Texas counties and parts of seven other counties. IECA operates 5,814 miles of line, serving over 30,000 active meters and employs 116 local citizens.
