At your not-for-profit North Central Electric Cooperative (NCE), our goal is to deliver safe, affordable, reliable electricity to our member-owners. Therefore, our rate structure is designed to reflect the co-op’s delivery and power supply costs.
Every year, the cooperative conducts a cost-of-service study to ensure these costs will be covered, allowing us to continue providing safe, reliable power at an affordable rate.
What is the “basic service charge?”
Members pay the basic service charge regardless of how much electricity they use each month. This fee offsets some of the fixed costs of providing electric services, such as the cost of poles, wires, transformers, and other necessary equipment. The basic service charge allows the cooperative to keep pace with the cost of ongoing maintenance and replacement of its 1,793 miles of distribution lines.
Coming rate adjustments
The board of trustees concluded that these adjustments are necessary due to forecasted lower electricity sales, increased costs associated with needed system maintenance and improvements, rising costs of fuel to generate electricity at our not-for-profit power plant, and continuing price increases for everyday materials to maintain the system. This is in addition to the projected 22% increase from the transmission company that was recently announced.
Three different rate changes will be seen on the upcoming February 2022 bills.
Basic service charge — Increase of $2, from $42 to $44.
• Members pay the basic service charge regardless of how much electricity they use each month.
• This fee offsets some of the fixed costs of providing electric services.
• Includes cost of poles, wires, transformers, and other necessary equipment for the ongoing maintenance and replacement of 1,793 miles of distribution lines.
Per kWh rates — will also increase to more accurately reflect the expenses incurred from the generation, transmission, and distribution of electricity. (See new rates in the table.)
• Increasing due to the projected 22% increase from the transmission company that they recently announced to upgrade their transmission lines. NCE must rent these lines to get the power from the generator to our distribution lines.
• Also increasing due to the forecasted lower electricity sales, the increased costs associated with needed system improvements, and rising costs of fuel for transportation and everyday materials to maintain the system.
Purchased power adjustment is expected to rise an additional 12%.
• Purchased power adjustment is the per-kilowatt hour charge and changes monthly based on several factors, including the cost of fuel and environmental controls charged to us by our electricity generator Buckeye Power.
In the end, mid-line, average-use members can expect at least a 7.4% increase on their total bill. This will vary based on the on-peak and off-peak usage and actual kilowatts used per member.