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Paul Taylor
USA
12 Posts |
 Posted - 10/07/2009 : 04:23:04 AM
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Petition to Rebalance Electric Co-op’s Rates
The Okanogan County Electric Cooperative (OCEC) has just developed a new rate structure to accommodate their estimated 9% increase in costs for this coming year. The 9% cost increase consists of a 12% increase for purchasing wholesale power (which is just over half their total expenses for each year), and an estimated 5% increase in their own operating expenses (which is just under half their total expenses). While making this adjustment to customers’ rates, the OCEC has used this as an opportunity to increase its monthly minimum/base charge substantially, from $29 to $53.50 (i.e., an 84% increase), and to substantially lower the price that customers pay for the power they use – the per-kilowatt hour rate (kWh) – changing from a two-tiered rate of $.048 for the first 1400 kWh use and $.058 for additional kWh used, to a lower, flat rate of $.038. The new $53.50 monthly minimum charge consists of a $40 base charge, plus a minimum demand charge of $13.50 ($2.70 x 5kW) regardless of whether a customer actually uses 5kW of power at any one time during the month. Customers who use more than 5kW during their 15-minute period of highest electricity use each month will incur a larger demand charge, at $2.70 per additional kW.
The OCEC management’s rational for tipping the balance of costs so heavily on the monthly minimum charge and so lightly on the kWh rate is their belief that every customer should pay the same amount toward covering the OCEC’s entire operational expenses, regardless of how much electricity they use. This belief is clearly not reflected in the residential rate structures of the 13 other rural electric co-ops in Washington, as shown in the list of monthly minimums/base rates and kWh rates below, nor is it reflected in the rate structures of other (non-co-op) local electric utility companies.
Benton Rural Electric Association: $12 min; $0.0652 kWh
Big Bend Electric Cooperative: $15 min; $0.06 kWh
Columbia Rural Electric Association: $17.50 min; $0.071 kWh
Elmhurst Mutual Power & Light Co.: $11 min; $0.0479 kWh
Inland Power & Light Co.: $16.80 min; $0.0521 kWh
Lakeview Light & Power: $5.50 min; $0.054 kWh
Modern Elec.& Water: $6.95 min; $0.0441<600kWh; $0.0491>600 kWh
Nespelem Valley Electric Cooperative: $15 min; $0.063 kWh
Ohop Mutual Light Co.: $15 min; $0.0599 kWh
Orcas Power & Light Cooperative: $25.50 min; $0.0758 kWh
Parkland Light & Water Co.: $11.10 min; $0.0456 kWh
Peninsula Light Co.: $15.49 min; $0.0648 kWh
Tanner Electric Cooperative: $14.50 min; $0.0795 kWh
(Ave. of these other 13 Wash. co-ops: $13.95 min; $0.0604 kWh)
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Okanogan County Electric Co-op.: $53.50 min; $0.0384 kWh
Note from this list that the overall rates of the rural electric co-ops in Washington vary due to each co-op’s circumstances – some have sources of less expensive wholesale power, more customers per mile, or large commercial/agricultural customers – but the other 13 co-ops all maintain a balance between base and kWh rates. For example, Lakeview Light and Power and Modern Electric and Water have low costs, and so they maintain low monthly base rates as well as low kWh rates. Orcas Power & Light Cooperative has particular high costs, having to maintain submarine cables between islands and the mainland, and so both their monthly base rates and kWh rates are both comparatively higher. Note, also, that none of Washington’s other rural electric co-ops or other local electric utilities charge a demand fee.
In contrast, the OCEC’s new rate structure has an exceptionally high base rate and an exceptionally low kWh rate. This imbalance places an undue burden of costs on both low and average electricity users (as illustrated in the table below), but more importantly, it provides little incentive for households on a budget to conserve power, such as investing in energy-efficient appliances, additional insulation, solar heating systems or solar electricity panels.
We believe that the OCEC management should adopt a rate structure that is closer to the base rate to kWh rate balances of the other rural electric co-ops. A more balanced rate structure would share the burden of increased costs across the full range of members, and would remove the disincentive toward members’ conserving energy. Specifically, we advocate that the OCEC adopt the following residential rate structure:
• Increase in the current, monthly base fee from $29 to $32 per month.
• Increase the current, two-tiered rate structure by half a cent, from $ .048 per kWh for the first 1400 kWh’s and $.058 for kWh’s used beyond 1400, to $.053 and $.063, respectively.
• No Demand Charge.
This proposed rate structure provides the OCEC with the 9% increase in revenue that it requires, while achieving a better balance between base and kWh rates. More importantly, it more evenly shares the burden of increased electricity costs among low, average and high users, and it provides a meaningful incentive for OCEC members to continue working on ways to conserve electricity within their households. The effect of this proposed rate structure on the average monthly electric bills for examples of low (300kWh per month), average (1200kWh per month), and high (2500kWr per month) users are as follows:
Average monthly bill under current rate structure: $43.40 for low user; $86.60 for average user; $160 for high user.
Average monthly bill under OCEC’s new rate structure: $65.02 (50% increase) for low user; $99.58 (15% increase) for average user; $149.50 (7% decrease) for high user.
Average monthly bill under proposed rate structure of this petition: $47.90 (10% increase) for low user; $95.60 (10% increase) for average user; $175.50 (10% increase) for high user.
If you are an OCEC customer and you would prefer the rate structure proposed in this petition over the OCEC’s new rate structure, and you wish to see this petition included with members’ November bill from the Co-op, please insert your name and address below, and return your completed petition either by EMAIL to coopratepetition@gmail.com, or by postal mail to Co-op Rate Petition, c/o Paul Taylor, P.O. Box 93, Twisp, WA 98856. Please return your completed petition no later than Tuesday, Oct 13, so that we can present the list of names to the OCEC management in the interest of having the petition included in the November bill mailing.
Thank you.
Paul Taylor, Susan Yetter & Joe Caillier (petition organizers)
(To add your name to the petition, please email or mail us the following:)
I/we, <insert name/s> of <insert address>, prefer the rate structure proposed in the “Petition to Rebalance the Electric Co-op’s Rates” over the new rate structure introduced by the OCEC, and ask that the OCEC include this petition in its November, 2009 bill mailing so that all members have the opportunity to compare these rate structures and communicate their input to OCEC management.
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emmettk
USA
2 Posts |
Posted - 10/25/2009 : 11:49:39 AM
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| I/we, <iEmmett Kinkade> of <P Bos 374, Winthrop, Wa>, prefer the rate structure proposed in the “Petition to Rebalance the Electric Co-op’s Rates” over the new rate structure introduced by the OCEC, and ask that the OCEC include this petition in its November, 2009 bill mailing so that all members have the opportunity to compare these rate structures and communicate their input to OCEC management. |
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Petition about Electric Co-op's new rates
