CEO’s MESSAGE Factors impacting your electricity prices

tions and other necessary equipment. Like many other businesses, we have experienced supply chain issues and steep cost increases for some of our basic equipment. For example, the cost for a distribution transformer has nearly doubled in price since 2021, and wait time to receive this essential equipment can take up to 36 weeks. As a not-for-profit cooperative, some of these expenses must be passed on to our members. I should note the Service Availability charge is the same for everyone.

August 2023

Co-op Comments

Official publication of Rural Electric Cooperative, Inc. CO-OP COMMENTS is owned, controlled and directed by Rural Electric Cooperative, Inc. It is printed monthly and mailed to members in Garvin, McClain, Comanche, Stephens, Grady and Carter counties in Oklahoma.

Rural Electric Cooperative, Inc. 13942 Highway 76 • P.O. Box 609 Lindsay, OK 73052 405-756-3104 • 800-259-3504

Outage Number: 855-399-2683

Just as inflation has impacted everything from the price of gasoline to the price of eggs, the cost for the fuels required to produce electricity have also risen. This timely topic helps explain some of the factors impacting electricity prices (and bills).

While there is no short answer, there are a few key elements impacting electricity prices and rates. Some of these factors REC can manage, some of them you impact and other factors are beyond our control. So, let me break it down.

There are three primary parts to your monthly electric bill: a Service Availability charge, a kWh charge and a Power Cost Adjustment (PCA). To understand your total energy costs and what impacts your bill, lets unpack one piece at a time.

The first is a fixed monthly Service Availabilitiy charge, which covers the costs associated with providing electricity to your home. This includes equipment, materials, labor and operating costs necessary to serve each meter in REC’s service territory, regardless of the amount of energy used. In order to ensure the reliable service you expect and deserve, we must maintain the local system, including power lines, substa-

Another component of your monthly bill is the kWh charge, which covers how much energy you consume. You have likely noticed the amount of energy you use can vary from month to month and is typically impacted by extreme temperatures. When temperatures soar or dip, your cooling and heating equipment run longer, which increases your home energy use. Regardless, energy consumption is an area you have some control over, and you can lower your monthly bill by actively reducing energy use. Your thermostat is a great place to start, so be sure to keep it close to 78 degrees during summer months.

The last component of your bill is the PCA, which is the same amount for all coop members. The PCA recently increased because of higher fuel prices, which means the power REC purchases from our wholesale provider is more expensive. The PCA covers fuel cost fluctuations without having to continually restructure electricity rates. 1125502 www.recok.coop

I hope this information sheds light on some of the factors impacting electricity prices. While we can not control the weather or the rising costs of fuels, please know REC is doing everything possible to keep internal costs down.

We are here to help you, too. Contact us if you have questions about your energy bill or for advice on how to save energy.

Board of Trustees

Gary Jones, President, District 1

Scott Christian, Vice President, District 1

Brent Bacon, Sec./Treasurer, District 1

Larry Anderson, District 2

Johnny Harrel, District 2

Terri Hays, District 2

Mark Finch, District 3

Randy Griswold, District 3

Sonny Harrison, District 3

Lisa Whitman, Attorney

Management and Staff

Dusty Ricks, Manager/CEO

Linda Ray, CFO

Kelli Lindsey, Administrative Assistant and Staff Coordinator

Elaine Gilreath, Manager of Customer Service and Data Processing

Jon Jones, Manager of Engineering

Mitch Gilreath, Manager of Information Technology Services

Megan Lawrence, Manager of Member Services and Marketing

David Crull, System Superintendent

Jason Mays, Operations Superintendent