The Following Rate Restructuring Changes Were Approved
Alger Delta CEA Policy No. 229, RATES AND SERVICE RULES, Section G states: “The Cooperative shall publish notice of any rate change or any change in billing practices and service rules or terms and conditions of service at least 30 days prior to the effective date of the change. The notice shall be mailed to each member of the Cooperative and placed on the Cooperative’s website.”
At the May 18, 2022, regular meeting of the Board of Directors, the following rate restructuring changes were approved:
1) Reinstate the Power Cost Adjustment Clause
2) Rename and combine “Home and Farm” and “Seasonal Residential” rate classes into “Residential”
3) Change the Fees and Rates as shown in the chart below
These changes will be effective starting with the July 1, 2022 billings.
|
Class |
Charge Type |
Current Cost |
New Cost |
|
Home and Farm |
Service Charge |
$25.00/month |
$35.00/month |
|
|
Energy Charge |
$0.149/kWh |
$0.133/kWh |
|
Seasonal Residential |
Service Charge |
$25.00/month |
$35.00/month |
|
|
Energy Charge |
$0.149/kWh |
$0.133/kWh |
|
Small Commercial |
Service Charge |
$25.00/month |
$35.00/month |
|
|
Energy Charge |
$0.149/kWh |
$0.132/kWh |
|
Large Commercial Primary |
Service Charge |
$0.00/month |
$50.00/month |
|
|
Energy Charge |
$0.117/kWh |
$0.1118/kWh |
|
|
Demand Charge |
$10.89/kW |
$11.22/kW |
|
Large Commercial Secondary |
Service Charge |
$0.00/month |
$50.00/month |
|
|
Energy Charge |
$0.117/kWh |
$0.1118/kWh |
|
|
Demand Charge |
$11.00/kW |
$11.33/kW |
|
Industrial Power |
Service Charge |
$0.00/month |
$166.67/month |
|
|
Energy Charge |
$0.1170/kWh |
|
|
|
On-Peak Energy |
|
$0.1126/kWh |
|
|
Off-Peak Energy |
|
$0.1026/kWh |
|
|
Demand Charge |
$10.89/kW |
$11.93/kW |
Rates Discussion Information
At the April 20th, 2022, and May 18th, 2022 Board of Director meetings, the Board of Directors will consider various changes to the rates charged for electricity. Some of the changes under consideration include:
- A rate restructuring to minimize the cross-subsidization that is occurring. This subsidization is due to the Service Charge being too low. The staff is recommending the Service Charge be increased over 3 years from $25.00/month to $55.00/month for residential members. This increase will be paired with a decrease in the energy charge over 3 years from $0.149/kWh to $0.101/kWh.
- Increasing the allowable Power Supply Cost Recovery Factor. This has been set to 0 since 2017, which reflected the steady or decreasing energy costs that were prevalent at that time. Staff is recommending that a maximum allowable factor of $0.02/kWh be approved. This will allow Alger Delta to pass higher than budgeted power costs along to the members on a rolling 6-month average. Alger Delta will not see any extra revenue from these additional costs should they occur.
- Consolidating the “Farm and Home” and the “Seasonal Residential” rate classes into 1 rate class titled “Residential”. Currently, all costs and terms are virtually identical for these 2 classes and combining them simply makes sense as a way to simplify the rate book.
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