2023 Rate Increase

Continued from previous page to cover basic operational costs. All residential members are charged the same amount for the cost of operation because all members benefit from the same service.

Distribution Energy Charge

Beginning with bills mailed after July 7, 2023, the Distribution Energy Charge will increase from $0.0535 to $0.05671 per kilowatt-hour.

The Distribution Energy Charge includes all costs that are not recovered in the Distribution Base Charge, such as regulatory costs.

This is the portion of the bill members can control by controlling their electric use. If a member decreased their electric use by 1.2 kilowatt-hours each day for a month, they would more than avoid the increase to the Distribution Base Charge and the Distribution Energy Charge.

Rate Increase Frequently Asked Questions

How much will my bill increase?

Beginning with bills mailed after July 7, 2023, there will be an increase in Butler Rural Electric Cooperative’s Distribution Base Charge and Distribution Energy Charge. The Distribution Base Charge will increase from $40 to $42 for residential members. The Distribution Energy Charge will increase from $0.0535 to $0.05671 per kilowatt-hour.

The rate changes on the distribution components of the bill are forecasted to result in an average increase of 2.7% for residential members, or a $6.49 increase per month.

Why is this increase necessary?

A rate increase was necessary to offset the continually rising costs of materials, labor, and other expenses. As a not-for-profit cooperative, we must pass along rising costs to members. Cooperative employees have controlled costs for the past six years, allowing us to delay an increase that was originally forecasted in 2019. Thankfully, these changes are significantly lower than what you have heard reported by some of our neighboring utilities in the past 18 months.

When will the rate increase take place?

With the rate increase going into effect for all bills mailed after July 7, the new rates will be applied to energy use beginning July 1. Bills with our new rates will be calculated August 3.

Who made the decision to increase rates?

Butler Rural Electric Cooperative’s Board of Trustees and management staff made the decision to increase rates after conducting cost of service studies and updating our financial forecast. A rate increase is necessary to maintain the power

Rising equipment costs

What’s on an Electric Power Pole?

The cost of goods needed to deliver electricity has risen over the last six years, when we last increased distribution rates. The graphic below shows the direct price increases from 2017 to now. As a not-for-profit utility, we must pass along rising costs to members.