LREC Rate Increase 2023

The Lake Region board and staff reviewed the rate study by Guernsey Engineering for the coops’ financial forecast. The next step is to talk with our members and inform everyone LREC will have to implement a rate increase starting in January 2023 to keep the co-op in good financial health.

We published an article in the November newsletter discussing this topic. If you missed that article, please continue to read this article below.

The notable rate increase is the residential change in the monthly service availability from $32.50 to the new rate of $42.50. Service availability is the fee associated with having an electric meter on your property and maintaining all the right-of-ways and electric infrastructure to keep this meter working. Members will also notice a new energy charge of $0.0792 per kWh for usage (slightly lower than our old kWh rate).

When we look at all the costs involved with making electricity available to you at the flip of a switch, we come up with the service availability charge. The $10 extra gets us the revenue our studies say we need to maintain a prudent financial condition for the following year.

The PCA (Power Cost Adjustment) is a separate line item on each bill that reflects the increases and decreases in our purchased power cost; since we do not generate our power, we buy power from KAMO. Wholesale energy costs are roughly 60% of every single dollar you pay to LREC. With the cost of generating power going up, mainly due to natural gas costs, members will no longer see the credit they are used to seeing on their PCA line each month. In 2023 the PCA will move from a credit to zero. The PCA is set in January of each year to respond to variations in power supply costs.

Page four of your newsletter will have an easy to read comparision of our current rates set in 2018 to our new rates starting in 2023.

LREC takes our rates very seriously. Your calls and questions are welcome at any time. Rate increases are not fun for anyone, but if we all communicate, we can make the best of it and move your cooperative forward on solid financial ground.

The average residential LREC member uses roughly 1,180 kWh per month of electricity. The chart below is showing the difference between the current rates and the new rates starting in 2023.

Current Breakdown of Charges

Service Availability $32.50

Energy Charge 1,180 kWh @ 0.08224 = $97.04

PCA 1,180 kWh @ -0.007945 = -$9.38

Total = $120.16

New Rates Breakdown of Charges

Service Availability $42.50

Energy Charge 1,180 kWh @ 0.0792 = $93.46

PCA 1,180 kWh @ 0.000 = $0.00

Total = $135.96

Residential Rate Class

Residential Service Availability Charge Current Rate: $32.50/New Rate: $42.50

Residential Energy Charge Current Rate: $0.08224 / kWh New Rate: $0.0792 / kWh

Residential PCA Current Rate: $-0.007945 / kWh New Rate: $0.0000

General Service Availability under 200 Amp Current Rate: $32.50/New Rate: $42.50

Single-Phase Service Service Availability over 200 Amp Current Rate: $42.50/New Rate: $52.50

Three-Phase Rate Class Service Availability Charge Current Rate: $57.50 New Rate: $72.50

Large General Service

Large General Service Rate Class Service Availability Charge Current/New Rate: $150.00

Large General Service Rate Class Service Demand Charge Current Rate: $10.45/kW New Rate: $11.25/kW

Large General Service Rate Class Service Energy Charge Current Rate: $0.0515/kW New Rate: $0.05130/kW

Large General Service Availability Charge Current/New Rate: $150.00

Large General Service Rate Class Base Demand Charge Current Rate: $2.25/kw New Rate: $3.55/kw

Time-of-Use Rate Class On Peak Demand Current/New Rate: $12.50/kw

Time-of-Use Rate Class Energy Change Current Rate: $0.0558 / kWh New Rate: $0.04620 / kWh

Outdoor Lighting

Security Light 7,000 lumons Current Rate: $9.80/New Rate: $29.38

Security Light 20,000 lumons Current Rate: $10.60/New Rate: $31.35

Fees and Charges Current/New Rates

Returned Check Current Fee: $30.00/New Fee: $40.00

Re-connect Current Fee: $75.00/New Fee: $100.00

After-Hours Reconnect Current Fee: $250.00/New Fee: $500.00

Meter Tampering Current/New Fee: $250.00

48 Hour Notice Current/New Fee: $5.00

Break Box Current Fee: $25.00/New Fee: $50.00

Meter Test Current/New Fee: $35.00

Connect Current/New Fee: $35.00

Temporary Service Connect Current Fee: $40.00/New Fee: $75.00

False Outage Report Current/New Fee: $100.00

Staking / Engineering Consulting Current/New Fee: $75.00

Security Light Relocation Current/New Fee: $100.00

Credit Check Current/New Fee: $5.00