Rate adjustments will start in April

Henry County inflation along with a vast majority of companies worldwide.

REMC saw its last rate adjustment in February 2019. Since then, we have persevered through some of the most challenging times, including a pandemic, global supply issues, rising fuel costs, record-high inflation and much more.

The Board of Directors has made some tough decisions over the past few months on how we must handle the upcoming rate adjustments needed to ensure that we can continue to provide the best possible service to our members.

FOLLOW US ON TWITTER www.twitter.com/

A third-party consultant was hired to do a cost-of-service analysis. Through the process, they collected information to determine the dollar amount needed to keep rates cost competitive with the lowest possible impact on the member consumer. Each rate class has a unique load and service requirement that plays into the rate structure. As a cooperative, we strive to ensure that each rate class covers its fair share.

Complex decisions were made based not only on how things are today, but also considering the foreseeable future. Challenges arose when the cooperative experienced high

Starting April 2023, consumers can expect to see a 6.8% rate adjustment on their statements. Some rate classes may see slightly less, and some may see more. HCREMC Board members focused on putting more of the adjustment into a flat rate cost (distribution charge). The distribution charge covers everyday expenses providing power to the consumer, such as equipment (meter, transformers, poles, wire, etc.), workforce, the billing process and administration costs. Variable costs are found in the kWh sales, which the member controls. The kWh will be the energy that you, as a consumer, are charged and billed to cover the cost of home usage. HCREMC is billed for this use from our power supplier, Hoosier Energy, so we can purchase power for you.

Making an adjustment across all rate classes ensures that all members are contributing to their part on the grid.

Our residential members will see the distribution charge go from $37.50 to $57.68. The June-November energy charge (kWh) will be reduced from $0.1112 to $0.1080, and the December–May charge will be reduced from $0.1031 to $0.1017.

CONTINUED ON PAGE 6

CONTINUED FROM PAGE 5

So, what does this mean for you, the member?

If you use 1,500 kWh, you will see the following:

Another component of your bill is the power cost adjustment (PCA) tracker. The PCA tracker is an adjustment sent to us from our power supplier, Hoosier Energy. It is a fuel cost adjustment that is calculated and passed directly to the members’ bills. We had been fortunate for several years to see this line as a credit on the bills because fuel costs had been lower than expected, but starting in 2022, we saw that shift to a charge. Coal prices have increased by over 300% and natural gas prices have increased by more than 175%, driving the need to adjust the PCA tracker. 2023 is expected to be much the same, as Hoosier Energy is currently projecting the tracker to be much higher than ever before. The PCA is monitored regularly and adjusted monthly.

We understand the impact that rate adjustments make on our members, and we are doing everything we can to keep that impact as minimal as possible. To remain financially sound, we must adjust rates now.

Please know that our member service team is always here to assist you. We have resources available to you to find ways to reduce your energy use. We also have programs available, such as budget billing, to help level out your payments throughout the year. Please contact us if you want to discuss any of these options.

MELISSA TRUE CEO

Large Agriculture – Three Phase

Industrial – Low Load Factor (<65%)

Efficiency

TIP

DO YOU HAVE A HOME OFFICE?

Set equipment like printers and scanners to automatically switch to sleep or energy-saver mode when not in use. In addition to saving energy, the equipment will stay cooler, which will help extend its life.

— U.S. DEPARTMENT OF ENERGY