General Manager & CEO Chris Tackmann
In my article last month, I discussed the different charges that appear on your electric bills. I also mentioned that our rate study was complete. Based on this study, there will be an increase in the residential facility charge and we will be switching to a “per day” facility charge on all accounts starting on October 1, 2023. Before I explain how much the increase is, I’d like to take a moment to review what the facility charge is.
The facility charge covers the costs associated with providing electricity to your home. This includes equipment, materials, labor, and operating costs necessary to serve each meter in OEC’s service territory, regardless of the amount of energy used.
An electric rate increase is a necessary measure to ensure the continued reliability, stability, and sustainability of our electricity infrastructure. As our society becomes increasingly dependent on electricity for everyday activities, from powering homes and businesses to supporting critical infrastructure, the strain on the existing power grid becomes more evident. The funds generated from a rate increase can be strategically allocated to modernize and upgrade power generation facilities, power lines, and distribution networks. By investing in equipment and technologies, we can enhance the efficiency of energy delivery, reduce downtime due to maintenance, and improve overall grid resilience against natural disasters and cyber threats.
Over the last couple of years our costs have increased just like they have for every other business and person in the world. Transformers, poles, wire, etc. have dramatically increased in price and lead times. As I mentioned at our annual meeting, our wholesale power costs have also risen. We have taken measures internally to reduce our costs; however, it has come to a point where we need to increase our fees.
On October 1, the facility charge will change to a “per day” charge instead of a flat monthly fee (currently at $32.25 for residential members). This charge will increase for residential members from the current per day charge of $1.075 to $1.25 per day, for a member who uses 1,000 kWh a month, this would be an increase of approximately 3.76% on their overall bill. The restructure of the facility charge will align better with the other charges on your bill that are based on either an hourly consumption or a daily charge.
While increases are never fun to announce, this increase is necessary to continue to ensure reliable, stable, and sustainable infrastructure and service as I mentioned above. Please know that we continue to monitor our costs and do everything that we can to keep them at a minimum. If you have any questions about this increase, please feel free to contact our office.