Editor's Note: This CEO/general manager's column was first published in the January 2024 edition of Kansas Country Living.
On Dec. 19, 2023, a rate adjustment proposal was presented to the Board of Trustees of the Wheatland Electric Cooperative, Inc. (WEC). The cost-of-service study was completed by Mike Searcy of C.H. Guernsey & Associates.
As announced in the December 2023 issue of Kansas Country Living, the December board meeting was open to all members during the section of the meeting when the rate adjustment proposal was discussed and voted upon.
During the presentation, Searcy demonstrated the rates of all classes of service and how rate changes were applied to the various classes. The board, staff and members in attendance asked Searcy numerous questions about the proposed rate structures. Members also asked cooperative staff how the proposed rate structure would be implemented.
After all questions were answered, the WEC Board of Trustees discussed the matter thoroughly and decided it was in the best interest of the cooperative and its members to adopt the rate proposal. The rates will go into effect March 1, 2024.
THREE-PART RATE STRUCTURE
A three-part rate structure is being implemented to ensure a fair and transparent system for our members. This three-part rate structure is designed to encompass the various components that contribute to the overall cost of providing electricity.
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SERVICE AVAILABILITY CHARGE: Fixed monthly charge designed to recover the costs of providing equipment, materials, labor and business overhead necessary to serve each meter, regardless of the amount of electricity consumed.
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ENERGY (kWh) CHARGE: The cost for the total amount of energy, measured in kilowatt-hours (kWh), used within the billing period. It is calculated by taking the total kWh used by the member and multiplying it by WEC’s kWh charge for the member.
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DEMAND CHARGE (kW): A charge to appropriately allocate costs to build, maintain or upgrade the infrastructure (power lines, transformers, substation upgrades, etc.) needed to ensure enough energy is delivered to meet members’ needs. The charge is determined by the maximum demand of energy at any point within the billing cycle multiplied by the determined rate for a member’s specific rate class.
INTRODUCE NEW GENERAL SERVICE MEDIUM POWER TARIFF
WEC aims to ensure fairness and equity among all our member-owners. By creating specific tariffs for different types of members (e.g., residential, small commercial, large commercial), the cooperative can tailor rates to match the cost structures associated with serving each group. This prevents one group from subsidizing the electricity costs of another, promoting fairness.
Medium-sized commercial or industrial members often have varying load profiles and usage patterns. By implementing a general service medium power tariff, WEC can encourage these customers to better manage their energy demand. It is part of our strategic approach to provide reliable and competitively priced electricity to our diverse member-owners while ensuring the cooperative’s financial stability.
Members who are eligible for the General Service Medium power tariff will be notified.
CONTACT US WITH QUESTIONS
As we have expressed in earlier articles, raising electric rates is a matter of paramount importance to the Wheatland Board of Trustees. The cooperative’s board has evaluated this issue for some time and decided the increase was necessary for the responsible operation of the cooperative – both for the quality and reliability of service and the financial integrity of the cooperative. Please email memberservices@weci.net if you have additional questions or concerns.
UNTIL NEXT TIME, TAKE CARE.
Bruce W. Mueller, CEO/General Manager