Time-of-Use Rate Payers to See Rate Adjustment Effective Jan. 1

As part of an ongoing effort to better reflect OEC's true cost of providing electric service to our 57,000 accounts, the service availability charge on our time-of-use rate will increase from 90¢ to $1 per day, effective Jan. 1, 2020. The good news? Another part of the electric rate will decrease.

"According to a cost of service study completed three years ago, our service availability charge should be about $53 per month, or about $1.77 per day," said CEO Patrick Grace. "As of Jan. 1, it is well under that at $1."

WHY DID THE SERVICE AVAILABILITY CHARGE INCREASE?

The service availability charge is a fixed daily cost. Theoretically, it should consist of OEC's fixed costs, but the reality is quite different.

Almost all of OEC’s operating costs are fixed. Whether a member uses one kilowatt hour (kWh) per month or 1,000 kWhs, the same amount of infrastructure and materials are needed to provide electricity.

In addition, linemen, bucket trucks and maintenance dollars are needed on a daily basis to ensure that infrastructure operates reliably and efficiently, which can be difficult in unpredictable Oklahoma weather.

"These are all fixed costs for OEC," said Grace. "They are all needed no matter how many kilowatt hours our members use."

WILL PART OF THE RATE DECREASE?

In order to keep the rate adjustment from being a rate increase, an area of OEC’s residential rate will be reduced.

On June and October bills, members will experience a decreased cost for off-peak electricity use. On-peak rates occur on weekdays from June 1 to Aug. 31 from 3 to 7 p.m. The cost of energy used during off-peak hours — anytime other than the on-peak hours listed — on June and October bills will lower from 11.5252¢ to 11¢ per kWh.

The small commercial rate is set to change slightly, as well. Check www.okcoop.org/rates for details.

OEC continually evaluates all options and works hard to ensure members are paying a fair and reasonable price for their electricity.

Visit www.okcoop.org to learn about ways you can save on your electric bill throughout the year — you might even qualify for a free energy audit! — or to explore our other rate options.