Rate IncreaseComing April 2023

General economic forces are adding up in all areas of our lives. e impact of in ation can be noticed at the grocery store, gas pumps and major retailers, to name a few. RushShelby Energy is not immune to in ation. is has increased the cost of electricity, materials and equipment we purchase daily to operate and maintain our system. For example, gas for trucks increased, and materials such as wire, nuts, bolts, poles and transformers have more than doubled in cost. In some cases, it has become challenging to obtain these items.

Toward the end of 2021, global energy costs began to increase dramatically due to in ation, supply chain issues and most recently, the war in Ukraine. Coal prices have gone up 300% since 2021 and natural gas prices have increased more than 100%. is has resulted in an increase of more than 175% in wholesale power prices. While we have added wind and solar power to the mix of electricity we purchase from Hoosier Energy, there isn't enough green power produced to cover all needs. Coal and natural gas represent more than half of Hoosier Energy's annual operating cost.

RushShelby Energy has absorbed a considerable amount of these higher costs through sound management and stewardship. However, due to continued industry-wide increases, RSE must spend more on purchasing electricity and supplies than we can absorb. Unfortunately, this means we must raise rates to help us meet our nancial goals and remain scally sound. is increase will take e ect on April 1, 2023. is is the rst base rate increase since April 2019.

We provide electric service to six di erent rate classes. Di erent types of users have di erent load characteristics and con gurations for lines, transformers and substations. Each con guration bears other costs allocated appropriately to each rate class. Due to these di erences each rate class may see a rate change varying from the average of 5.4% over all classes.

For years, we have charged much less in the monthly connection charge that covered the xed costs to maintain the quality, reliability and integrity of the services we provide to get electricity to your home. What the monthly connection charge does not cover is recouped in the energy charges. is current rate structure relies heavily on the sale of power to recover the xed costs such as power lines, equipment, right-of-way maintenance, taxes, insurance and more. is can be negatively a ected by signi cant variations in energy sales. Di culty covering the day-today operating costs or collecting more than what was needed can be the result of this. Moving the expenses where they need to be will level out this issue for RushShelby Energy. e monthly connection charge for residential members will change to $55.00 per month while kWh charges