CARROLL ELECTRIC COOPERATIVE LOCAL PAGES
SERVICE AVAILABILITY CHARGE INCREASES IN JANUARY Carroll Electric will introduce an increase to the service availability charge beginning on your January bill. The move is needed to stabilize the cooperativeâ€™s financial position following two consecutive years of commercial and residential load loss.
y employees and I try to minimize the impact of a rate increase when it happens, and we are doing everything possible to keep operating costs low while sustaining safe, reliable electricity. But not every rate increase can be avoided. The latest increase is due in part to unseasonably warm winters and cool summers, which have decreased residential electricity use the past two years. Decreased coal mine production and the closures of a few mines in 2016 have caused our commercial load to decrease as well. Additionally, insect infestation and tree blight are forcing the cooperative to cut and trim trees as far as 20 feet outside of our normal right-of-way to avoid unnecessary and costly power outages. This additional cutting and trimming has increased rightof-way expenses.
Our goal, as a not-for-profit cooperative, is to provide service at cost.
To continue providing reliable and high-quality electric service, Carroll Electric must implement an increase to the service availability charge. This increase will take effect on your January bill and will affect residential and small commercial members.
Rate adjustment All residential and small commercial members will see a $3.50 per month price adjustment in the
Larry Fenbers, CEO/General Manager
service availability charge. This adjustment is designed to recover the cost of having facilities available to provide electric service, regardless of how much (or little) electricity is actually used. This includes the cost of the meters, poles, wires, transformers, and the associated maintenance of these facilities. The current service availability charge is not shown as a separate line item on your bill, but is rolled into the total charge. The service availability charge only covers part of the fixed costs. The remaining costs are rolled into the energy charge. Qualifying members with a radio-controlled switch on their water heaters will continue to see a $2 per month credit to their account. Large commercial power will not be affected by the rate adjustment. Our goal, as a not-for-profit cooperative, is to provide service at cost. However, we still need to budget for sufficient margins to build our system, handle storm activities, return capital credits, and handle the additional costs of removing trees that threaten our electrical infrastructure. The service availability increase will bring rate classes closer in alignment with the actual cost per meter. The most recent Costof-Service Study completed for Carroll Electric shows that the service availability charge should be $35.10. As your cooperative, we are committed to minimizing the impact of increasing power costs on your household. Contact us to learn how to save more energy throughout your home or to learn more about our energy efficiency rebates and programs.
NOVEMBER 2017 â€˘ OHIO COOPERATIVE LIVING
Published on Oct 25, 2017